What is a CAP?

What is a Corrective Action Plan (CAP)?

A Corrective Action Plan (CAP) is a formal process used to:

1. Identify deviations from standards or expected performance
2. Investigate root causes
3. Develop corrective actions
4. Implement solutions
5. Monitor effectiveness

Origin

CAP became a regulatory requirement following the Sarbanes-Oxley Act of 2002 (SOX), enacted after accounting scandals at Enron, WorldCom, and others.

Application to Government

While CAP originated in the financial sector, its methodology applies to any organization needing structured accountability — including government entities.

See Also

• About the Green Book
• The Story