Authority Matrix Sample | Interaction Types

Insights ► | All Insights ►

Authority Matrix

Internal Control & Governance

Posted 21 January 2018 | Revised 22 September 2018

Introduction

The inputs in developing a robust Internal authority matrix will be prepared on the basis of the organization structure, core and support business processes. The purpose of an authority matrix are internal control and governance.

The authority matrix is subject to but not limited to the following guidance:

The approving authority cannot approve transactions which directly benefits him/her. For example, the approving authority’s expenses claims i.e. item for his/her own use. These transactions must be approved by the approving authority’s immediate superior.
Any amendments, revisions or additions to the authority matrix shall be effective only upon approval by the board of directors.

Authority Interactions Types

There are four types of authority interactions.

Color Coded Authority Interactions

Authority Matrix Sample

An authority matrix defines a basic procurement process.

Procurement Authority Matrix

RACI Matrix

A responsibility assignment matrix, also known as RACI matrix describes the participation by various roles in completing tasks for a project or business process. It is especially useful in clarifying roles & responsibilities in cross-functional or departmental processes. RACI is an acronym derived from the four key responsibilities most typically used: Responsible, Accountable, Consulted, and Informed.

R-A-C-I Definitions

Standard definitions for R-A-C-I to expand on the business interface process chart.

RACI Sample

Lets further understand RACI with an example. A trading company in physical raw sugar defined their core business process activities to provide clarity about the roles and responsibilities of stakeholders for each key task as illustrated.

Physical Raw Sugar RACI

Physical Raw Sugar Process Map & Interface Chart

Once the physical raw sugar RACI has been defined and approved, the trading company mapped the physical raw sugar key activities and interface chart to illustrate the flow of the process. This will allow the company to focus on the work rather than on job titles or hierarchy.

Interface Chart