Explanation of terms

Segregation of Duties (SoD), also known as Separation of Duties, refers to the principle of separating operational or security-related tasks in such a way that no single person has complete control over an entire process. The aim is to prevent errors, misuse and manipulation and to clearly separate responsibilities.

Functionality

The SoD principle divides critical tasks into independent steps. Typical implementation: one person initiates an action, another checks or approves it ("dual control principle"). This creates a system of checks and balances that strengthens transparency and accountability.

Separation of functions in practice

In practice, segregation of duties (SoD) means that tasks that could conflict with each other are clearly assigned to different people or roles. This prevents a single person from being able to completely control or manipulate sensitive processes.

Companies typically implement the separation of functions in four central areas of responsibility:

• Authorization: verification and approval of transactions
• Safekeeping: controlling access to physical and digital assets
• Reconciliation: Ensuring the accuracy and completeness of transactions
• Recording: Creation and maintenance of the associated transaction data

Enforcement can take place in two ways:

• Static: Conflict roles are permanently separated (e.g. no simultaneous approval and release of payments).
• Dynamic: A second authorization is requested in real time before a process can be completed.

Typical areas of application are finance, IT, cyber security and other sensitive areas of the company. Risks such as insider threats, fraud, forgery or data misuse can be significantly reduced by clearly assigning roles.

In addition, segregation of duties is an important part of compliance, for example under the Sarbanes-Oxley Act (SOX), and contributes to accountability, accuracy and error prevention[2].

Areas of application

• Financial and accounting processes: Separation of payment approval, posting and control to prevent fraud or errors.
• IT and security management: separation of system administration, development and auditing to prevent uncontrolled access or data manipulation.
• Identity & Access Management (IAM): SoD regulates that no person has rights for contradictory tasks (e.g. "creating" and "releasing" authorizations) at the same time[3].

 

A classic example:

An employee may check an invoice, but not approve it themselves. This separation enables control. In IT, the principle is particularly important in Identity & Access Management (IAM), especially in regulated sectors such as finance, healthcare or industry.

Conclusion

The segregation of duties (SoD) is a central component of modern corporate and IT security. It ensures that no single person can control critical processes, thereby creating transparency, accountability and protection against misconduct. Through clearly defined roles, controls and regular checks, companies significantly reduce the risk of fraud, data misuse and compliance breaches.