What is an example of a control measure in an organization?

A control measure in an organization is a process or policy put in place to manage risks and ensure that the organization operates effectively and efficiently. The option that highlights this concept most clearly is the credit control to limit bad debts.

Credit control involves setting limits on how much credit can be extended to customers, monitoring debts, and ensuring timely payments. This is crucial for maintaining cash flow and minimizing the risk of financial losses due to customers not paying their debts. By implementing credit control measures, an organization can actively manage its financial exposure and ensure that it remains solvent and capable of meeting its obligations.

In contrast, while an expense reporting system does play a role in managing expenses, it is primarily focused on tracking costs rather than controlling financial risks associated with credit. Environmental strategy and market research, while important for overall organizational strategy, do not directly serve as control measures for financial management. Therefore, focusing on controlling credit risks directly relates to how an organization safeguards its financial health.