What is SOD concept in banking?

The SOD (Segregation of Duties) concept in banking refers to the practice of dividing responsibilities among different individuals to reduce the risk of fraud and errors. By ensuring that no single individual has control over all aspects of a financial transaction, banks can enhance their internal controls and promote accountability. This framework helps to prevent conflicts of interest and safeguards the integrity of financial operations. SOD is a critical component of risk management and compliance in the banking sector.