The system of checks and balances refers to the division of power in order to prevent one organization or body from having too much power.
A system of checks and balances can help reduce errors and prevent inappropriate behavior in organizations.
The system of checks and balances is most often used in the context of public administration, for example, in the US government through the creation of the executive branch, the legislature and the judiciary.
Checks and balances are important in companies and other organizations where one person can make decisions that affect operations, such as the CEO or majority shareholder.
The idea of checks and balances goes back to the Roman Empire.