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Assurance that operates by detecting and correcting failures after they occur. Compensatory assurance compensates for broad discretion through monitoring, periodic audits, and post hoc review. Organisations relying predominantly on compensatory assurance experience rapidly increasing assurance load as complexity grows.
An audit committee expands audit coverage, introduces additional approval layers, and increases reporting frequency in response to governance failures—intensifying monitoring effort without altering the underlying action space that produces the failures.
Section IV: Constraint Placement and the Dynamics of Assurance Load