Glossary · Operations
Four-Eyes Principle
The four-eyes principle requires that a transaction or deliverable is checked and approved by a second, independent person before it is finalized, also known as maker-checker.
Under the four-eyes principle, one person prepares (the maker) and a different person reviews and approves (the checker). In fund operations it applies to wire and payment release, manual journal entries, NAV sign-off, static data changes such as bank details or security master records, investor onboarding approvals and break write-offs.
The control is strongest when enforced by systems — the application does not allow the same user to create and approve an item — and when evidence of review is retained. Reviewers should check substance, not just completeness: comparing to source documents, recalculating key figures, and investigating unusual items.
Weaknesses include approvals rubber-stamped under time pressure, shared logins that defeat user separation, and approvers who lack the knowledge to challenge the preparer. Four-eyes review works alongside segregation of duties, which separates incompatible responsibilities across roles. Regulators and auditors expect both controls to be documented in SOPs and evidenced in the audit trail.
Related terms
Tell us where your operations need to be in twelve months.
A 30-minute scoping call with our team. You leave with a clear view of scope, transition timeline and indicative pricing.