Exception Management Policy

Exception Management Policy

1. Purpose

The purpose of this policy is to define a structured approach for requesting, approving, documenting, and reviewing exceptions to organizational policies, standards, and procedures. This ensures that exceptions are granted only when necessary, risks are understood, and appropriate controls are implemented.

2. Scope

This policy applies to all employees, contractors, systems, applications, and business processes across the Organization where deviations from established policies, standards, or controls are required.

3. Policy

Exceptions to policies or standards shall be granted only under justified business or technical circumstances and must follow the defined exception management process. All exceptions must be documented, approved, time-bound, and periodically reviewed.

4. Exception Request Requirements

Each exception request must include:

• Description of the policy or requirement for which exception is requested
• Business or technical justification for the exception
• Risk assessment and potential impact
• Compensating controls, if any
• Duration of the exception (start date and end date)
• Owner responsible for managing the exception

5. Approval Authority

Exceptions shall be evaluated considering security, business, and operational requirements. Approval must be obtained from authorized senior stakeholders such as CTO, CEO, DevOps leadership, business owners, or other designated senior personnel who are capable of understanding the technical and business impact of the exception.

6. Exception Duration

All exceptions must be time-bound. The validity period should be clearly defined and should not exceed a reasonable duration unless re-approved. Permanent exceptions are discouraged and must undergo periodic re-evaluation.

7. Exception Review

Approved exceptions shall be reviewed periodically to:

• Assess continued business need
• Evaluate risk exposure
• Confirm progress toward remediation
• Decide on extension or closure

Exceptions that are no longer required shall be revoked promptly.

8. Documentation and Tracking

All exceptions shall be documented and tracked in a centralized repository or approved tracking mechanism. The record shall include approval details, validity period, and review history.

9. Responsibilities

• Requestor: Provide justification and ensure compliance with compensating controls
• Approver: Evaluate risk and approve or reject the request
• Exception Owner: Monitor and ensure closure within approved timelines
• Organization: Ensure periodic review and compliance monitoring

10. Policy Review

This policy shall be reviewed periodically and updated as necessary based on business requirements, audit findings, regulatory changes, and operational learnings.