Pages

Thursday, August 1, 2013

COSO Framework on Enterprise Risk Management


The COSO has provided a comprehensive ERM Framework that facilitates universal guidance on implementation of ERM practices in any form of organization. It consists of eight components and four objectives. Together these eight components and four objectives if implemented effectively will lead to good level of ERM practices in an organisation and will ensure achievement of its objectives.

The eight components are:
- Internal Environment
- Objective Setting
- Event Identification
- Risk Assessment
- Risk Response
- Control Activities
- Information and Communication
- Monitoring

The four objectives are:
- Strategic: high level goals, aligned with and supporting the organization's mission
- Operations: effective and efficient use of resources
- Financial Reporting: reliability of operational and financial reporting
- Compliance: compliance with applicable laws and regulations


Fig: The COSO ERM Cube


Video: COSO ERM Cube explained (Source: Youtube)