sisekontrollis

Sisekontrollis is the Estonian term used to describe the internal control system within an organization. It consists of the processes, policies, and activities that help ensure reliable operations, compliance with laws and regulations, accurate financial reporting, and safeguarding of assets. The purpose is to manage risk and to provide reasonable assurance that organizational objectives are achieved.

A widely used framework for internal control identifies five interrelated components: control environment (the tone at the top), risk assessment, control activities, information and communication, and monitoring. While the COSO Integrated Framework is common internationally, organizations may adapt the model to fit size, sector, and regulatory context. Controls can be preventive, detective, or corrective and include policies such as separation of duties, authorization protocols, asset safeguarding, access controls, and thorough record-keeping.

Responsibilities are divided among management, the board or supervisory body, and internal auditors. Management designs and operates controls; the board oversees governance and risk management; internal auditors provide independent assessment and reporting on control effectiveness, with findings guiding improvements.

Implementation is typically risk-based and iterative: identify key objectives and risks, document controls, test their effectiveness, and remediate deficiencies. Regular monitoring and periodic reassessment ensure the framework remains aligned with changing conditions, technologies, and regulations.

In Estonia, as in many countries, sisekontrollis is considered a core element of governance, risk management, and compliance in both public and private sectors. Effective internal control improves decision making, enhances accountability, and supports stakeholder confidence.