0In any system, a feedback loop can be identified as a set of interlinkages between processes, where an event may positively or negatively impact the original process.
If we consider an organization as a system, with its own set of rules, policies and procedures, then any strategic decision can either have a positive or negative impact on the overall performance. For example, in case of a merger, it may result in greater revenues for the organization.
Feedback loops are a mechanism that provide feedback or information to the leadership, whether processes and internal controls are in place or not.
A positive feedback loop would mean that processes and controls are adequate. On the other hand, a negative feedback loop may point towards faulty processes or such other issues that would need to be rectified.
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