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Committee of Sponsoring Organizations of the Treadway Commission (COSO) -…
Committee of Sponsoring Organizations of the Treadway Commission (COSO)
Focusses on
Internal Control
of Enterprise Risk Management (
ERM
)
ERM
Enhance capacity to build value
Reducing operational surprises and losses
Identifying and managing multiple and cross-enterprise risks
Enhancing risk response decision
Seizing opportunities
Aligning risk appetite and strategy
Improving deployment of capital
Effective reporting and compliance with laws and regulations
Avoids damage to entity's reputation
Events can have negative or positive influence or both
Effectiveness
Limitations
Internal Control
Applied accross the enterprise - every level
Identify potential events that will affect the entity
Applied in strategy setting
Provide reasonable assurance to board and management
Effected by people at every level
Achievement of objectives
Process flowing through entity
Components of ERM
Risk Assesment
Informations & Communication
Event Identification
Monitoring
Objective Setting
Control Activities
Internal Environment
Risk Response
Objectives
Operations
Reporting
Strategic
Compliance
Responsible persons
Chief Executive Officer
Managers
Risk Officer
Financial Officer
Internal Auditor
Organization of Report
Contains Framwork and Executive Summary
Use of Report
Board of Directors
Senior Management
Other Entity Personnel
Regulators
Professional Organizations
Educators