What it asks for. Systems must enforce approved authorisations for controlling how information flows within the system and between connected systems.
In practice. Doing this well means defining which data may move where, then enforcing it with network segmentation, firewalls, proxies, data loss prevention and application-level controls. Examples include blocking sensitive data from leaving through unsanctioned channels and restricting flows between security zones. Auditors look for flow policies, rule sets and evidence that they are tested and reviewed. Cloud environments add flows between accounts, virtual networks and managed services, which should be covered by the same policy.
Common gaps. Organisations often control network traffic but not flows of data through SaaS integrations, APIs or file sharing. Information flow policies are frequently undocumented, so enforcement cannot be checked against intent. Rules allowing any traffic between internal zones are also common.