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MAIN THEMES OF RISK FRAMEWORKS - Coggle Diagram
MAIN THEMES OF RISK FRAMEWORKS
COSO ERM
CENTRAL CONCEPT = gives an integrated approach to risk management across organisations
Enterprise risk management consists of eight interrelated components that is derived from the way management runs an enterprise
Internal Environment which sets the tone of the organisation and how risk is viewed
Objectives must be set before risks can be identified
Event Identification that can affect how organisations meets their objectives, there should be a distinction between opportunities and risks
Risk Assessment should include what impact it could have and how it should be managed
Risk Response in terms of developing a set of actions on how to tolerate and deal with risks identified
Control Activities include the policies and procedures that helps to implement the risk responses
Information and Communication which would enable people to carry out their responsibilities
Monitoring of risk responses and continuous improvements and adjustments made according to how the organisation responds
Enterprise risk management is geared towards achieving an entity's objectives which can be divided into four categories
Strategic goals of enterprise
Operations must be effective and efficient
Reporting must be reliable
There must be compliance with laws and regulations
Defines what Enterprise Risk Management is indicating that it is a process applied in a strategic setting across the enterprise used to identify factors that may affect the entity.
PRINCIPLE 11 OF KING IV
CENTRAL CONCEPT = gives an outcome based approach to risk management to all governing bodies
4 Good Governance Outcomes as required by King IV = has an outcome based approac
Ethical Culture
Effective Control
Good Performance
Legitimacy
Concepts that form the foundation stones of King IV
Integrated Reporting
Stakeholder Inclusivity
Corporate Citizenship
Ethical Leadership
The Organisation in Society
Sustainable Development
Integrated Thinking
ISO 31000
CENTRAL CONCEPT = describes a structured based approach to risk management
Risk Management Process
Recognition or Identification of Risks
Ranking or Evaluation of risks
Responding to significant risk
Tolerate
Treat
Transfer
Terminate
Resourcing controls
Reaction planning
Reporting and Monitoring of Performance
Reviewing risk management framework
Framework for Managing Risk
Mandate and Commitment
Design of Framework
Organisation and its context
Risk Management Policy
Embedding risk management
Implement risk Management
Implement Framework
Implement Risk Management Process
Monitor and Review Framework
Improve Framework