What is required by the four-eyes principle in risk management?

The four-eyes principle is a fundamental concept in risk management that emphasizes the necessity of having two individuals involved in critical decision-making processes or actions. This principle is crucial for enhancing oversight and accountability within an organization. By requiring at least two approvals for significant actions, it mitigates the risks of errors or fraud that could occur if a single individual were responsible for making decisions.

In practice, this means that when a critical action, such as approving a large payment or making a significant operational change, is to be taken, two separate individuals must review and agree to it. This arrangement helps ensure that decisions are made thoughtfully and reduces the likelihood of unilateral actions that could lead to financial loss or compliance breaches. The oversight provided by an additional set of eyes serves as a check on the decision-making process, fostering a more secure and controlled environment.

The other answers do not encapsulate the essence of the four-eyes principle. For instance, while it might seem that involving multiple staff in every transaction enhances safety, this is not a specific requirement of the principle, which focuses on critical actions rather than every transaction. Continuous monitoring of all payment systems is an important operational practice but is not directly tied to the four-eyes principle. Finally, requiring authorization from a single