Understanding and applying the right types of controls is essential for robust risk management. These controls—preventive, deterrent, detective, compensating, corrective, recovery, and directive—fortify your organization against threats and ensure resilience. In this comprehensive blog post, you’ll discover what each control does, see practical examples, and learn how to integrate them for a secure and compliant business.
What Are Controls in Risk Management?
Controls are measures—policies, activities, or technologies—implemented to reduce, manage, or monitor risks. They allow organizations to proactively block, detect, or respond to threats and vulnerabilities, supporting safe and efficient operations.
The Seven Types of Controls (With Examples)
1. Preventive Controls
Purpose: Block undesirable events before they happen.
Key Features:
- Act as the first line of defense.
- Reduce or eliminate the likelihood of a risk occurring.
Examples:
- Access controls (passwords, biometrics)
- Segregation of duties
- Physical locks and security badges
- Firewalls and encryption
- Pre-employment screening
When to Use: Where prevention is most cost-effective or when regulatory standards require proactive measures.
2. Deterrent Controls
Purpose: Intimidate or discourage potential attackers, making risk-taking unattractive.
Key Features:
- Influence behavior, increasing the perceived risk of being caught.
- May not physically stop an action but discourage attempts.
Examples:
- Security guards or patrols
- Warning signs (e.g., “CCTV in operation”)
- Perimeter fencing with barbed wire
- Bright exterior lighting
- Alarm output devices
When to Use: In situations where visibility of security is as important as its actual effectiveness.
3. Detective Controls
Purpose: Identify and alert when something goes wrong, sometimes after the fact.
Key Features:
- Enable timely response when prevention fails.
- Provide crucial evidence and support improvement.
Examples:
- Intrusion Detection Systems (IDS)
- Audit logs and monitoring tools
- Bank reconciliations
- Exception and variance reports
- Physical inventory counts
When to Use: To monitor for breaches, errors, or suspicious events—especially in financial, operational, and security contexts.
4. Compensating Controls
Purpose: Provide alternative protection when primary controls are impractical due to limitations (technical, financial, regulatory, etc.).
Key Features:
- Must achieve effectiveness comparable to the control they replace.
- Require thorough justification and documentation.
Examples:
- Enhanced monitoring and manual oversight if automation isn’t feasible
- Multi-factor authentication (MFA) when network segmentation isn’t viable
- Encryption compensating for limited physical security
When to Use: In environments with legacy systems, budget constraints, or unique operational challenges.
5. Corrective Controls
Purpose: Address and remediate discovered issues to prevent recurrence.
Key Features:
- Fix or neutralize the impact after an incident.
- Support process improvement and future risk reduction.
Examples:
- Revising and updating policies, procedures, and training
- Blocking or disabling compromised accounts
- Disciplinary action for policy violations
- Enhanced fire protection after an incident
When to Use: Post-incident or after errors are detected to restore proper controls.
6. Recovery Controls
Purpose: Restore operations, data, and services after a disruption or disaster.
Key Features:
- Focus on rapid, reliable resumption of normal business.
- Often planned as part of business continuity and disaster recovery programs.
Examples:
- Data backups and offsite storage
- Disaster recovery plans (DRP)
- Activation of redundant systems and alternate sites
- System restoration methodologies
When to Use: When downtime, data loss, or major interruptions occur.
7. Directive Controls
Purpose: Guide or influence behavior toward desired outcomes through policies and directives.
Key Features:
- Set expectations, standards, and guidelines.
- Can be autocratic (command-focused), persuasive (logic/benefits-driven), or consultative (involving employee input).
Examples:
- Leadership instructions, standard operating procedures (SOPs)
- Mandatory briefings or safety protocols
- Organizational policies and codes of conduct
When to Use: To set behavior standards, define roles, and align all staff with organizational objectives.
Comparison Table: Types of Controls at a Glance
| Control Type | Main Function | Example |
|---|---|---|
| Preventive | Stop before occurs | Firewalls, access controls |
| Deterrent | Deter/prevent intent | Security guards, warning signs |
| Detective | Identify incidents | IDS, audits, exception reports |
| Compensating | Alternate safeguard | Manual oversight, extra monitoring |
| Corrective | Fix after incident | Procedure updates, disciplinary actions |
| Recovery | Restore operations | Backup recovery, DRPs, system restoration |
| Directive | Guide/mandate action | SOPs, policies, employee briefings |
How to Integrate Controls for Maximum Effectiveness
- Layer Controls: Use overlapping preventive, detective, and corrective controls for depth.
- Document and Review: Regularly audit, update, and test controls for ongoing relevance.
- Tailor to Risk: Match control type and strength to the nature and probability of specific risks.
- Train Staff: Empower employees with clear directives and practical training.
- Automate Monitoring: Where possible, leverage technology for continuous, efficient oversight.
Conclusion: Building Resilience With a Balanced Control Strategy
Mastering all seven types of controls is fundamental for a robust and adaptable risk management framework. By combining proactive, detective, compensatory, corrective, recovery, and directive controls, organizations not only reduce the likelihood and impact of threats, but also enhance operational agility, compliance, and stakeholder trust.
Use this guide as your blueprint for fortifying your processes, protecting assets, and leading your organization safely into the future.