Define: Compensating Controls

How is Compensating Controls defined in a legal contract?

• Compensating Controls means alternate methods used to meet the need for a security measure that is determined by a Chief Information Security Officer to be impractical due to valid technical or business limitations. These alternate methods should: meet the objective and rigor of the initial requirement; provide a similar level of security; be aligned with current accepted security protocols; and be proportionate to the additional risk resulting from not complying with the original requirement. Both the risk analysis demonstrating the gap between the original security measure and the proposed alternate one, and the determination that the risk is acceptable must be documented and agreed upon by the Chief Information Security Officer. Seen in 13 SEC filings.
• Compensating Controls means mechanisms put in place to meet a security requirement that cannot be explicitly met due to valid technical or documented business limitations, but nonetheless adequately mitigate the associated risks. Seen in 5 SEC filings.
• Compensating Controls means alternate methods used to meet the requirement for a security measure. Seen in 3 SEC filings.
• Compensating Controls means actions or processes that provide a similar result to standard operating procedures, but are temporary. Seen in 1 SEC filing.

Note: The Genie AI Legal Assistant pulled this data out of the SEC EDGAR Database of 500,000 records from the past 22 years of filings. We regularly update this page as new filings and definitions come in.

Search EDGAR for 'Definitions of compensating controls' yourself to verify these results. We are always keen to point people to source documents.

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Which definition should you use?

🤔 Our AI Legal Assistant has combined and improved the above descriptions to create market-standard 'Genie definitions' below, with guidance on which documents and which industry to use for each.

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Genie Definition 1

Compensating Controls means alternative methods, temporary or permanent, utilized to satisfy security requirements impractical to meet due to justifiable constraints.

Relevant Contract Types

• Information Technology Services Agreement
• Data Processing Agreement
• Service Level Agreement

Relevant Circumstances

• A technology company outsourcing its data processing operations
• A music streaming website dealing with user data
• An e-commerce platform leveraging cloud storage services

Relevant Sectors

• Technology Sector
• Data Analytics
• E-commerce

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Genie Definition 2

Compensating Controls means actions supplementing standard procedures, providing equivalent security mitigation amid technical or business limitations.

Relevant Contract Types

• Contractor Agreement
• Network Services Agreement
• Nondisclosure Agreement

Relevant Circumstances

• An organization hiring an independent contractor for its technical operations
• A company acquiring network services from a service provider
• Two businesses engaging in a mutual NDA involving data exchange

Relevant Sectors

• Telecommunications Sector
• Professional Services
• Manufacturing Industry

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