COSO launches enterprise risk management framework revision
- Published: Thursday, 07 September 2017 07:26
The Committee of Sponsoring Organizations of the Treadway Commission (COSO) has published a revision to its 2004 Enterprise Risk Management–Integrated Framework. ‘ERM Framework: Enterprise Risk Management–Integrating with Strategy and Performance’ builds on its predecessor. The updated edition is designed to help organizations ‘create, preserve, and realize value while improving their approach to managing risk’.
The revision, developed by PwC under the direction of the COSO Board, highlights the importance of enterprise risk management in strategic planning. It also emphasizes embedding ERM throughout an organization, as risk influences strategy and performance throughout the organization.
The first part of the updated framework offers a perspective on current and evolving concepts and applications of enterprise risk management to meet the demands of an evolving business environment.
The framework is organized into five easy-to-understand components that accommodate different viewpoints and operating structures to enhance strategies and decision-making. The update focuses on challenges and evolving expectations of enterprise risk management that business leaders and boards are dealing with in today’s landscape, including shifts in economic markets, evolving technologies, and changing demographics in supporting decision-making.
ERM Framework: Enterprise Risk Management–Integrating with Strategy and Performance is available in printed form, e-book, on-line subscription and pdf licensing for large organizations, accounting and consulting firms. COSO also offers software application licenses and a training license fee arrangement. Additionally, COSO is planning for the Framework to be translated into several languages, including Chinese, Japanese, Spanish, and French among others.
Read the executive summary (PDF).