Which of the following is an internal control relevant to governance processes?

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Internal controls are the procedures and policies a company uses to achieve reliable operations, accurate reporting, and risk management within its governance framework. Segregation of duties is a classic internal control because it divides responsibilities so no single person handles all parts of a critical process. When different people handle reserving and pricing, one person can raise concerns or catch errors that another might miss, creating a built-in check and balance. This separation supports governance by increasing accountability and reducing the chance of fraud or misstatement, which leadership relies on to oversee risk and ensure integrity of financial information.

External audit, financial examinations, and actions like replacing the Appointed Actuary are not internal controls. External audit and examinations are independent evaluations from outside the organization, and changing the Actuary is a governance decision or staffing action, not an ongoing control embedded in day-to-day processes.