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COSO Enterprise Risk Management (Components of enterprise risk management:…
COSO Enterprise Risk Management
Goal: Enables management to effectively deal with uncertainty and associated risk and opportunity, enhancing the capacity to build value for stakeholders.
Value is maximized when strategy and objectives are set to strike an optimal balance between goals and risks
Components of enterprise risk management:
Internal environment
Objective setting
Event identification
Risk management
Risk assessment
Control activities
Risk response
Information and communication
Monitoring
Users of enterprise risk management may take varying actions based on their position
Board of directors
Discuss and provide oversight with senior management
Senior management
Assess the organizations enterprise risk management
Other entity personnel
Consider how responsibilities are being conducted
Regulators
Establish expectations by rule or guidance
Professional organizations
Rule making or guidance and financial management
Educators
Academic research and analysis
Achievement of objectives
Operations
Effective and efficient use of its resources
Reporting
Reliability of reporting
Strategic
High level goals, aligned with supporting its mission
Compliance
Compliance with applicable laws and regulations