COSO Advisory Council considering Enterprise Risk Management Framework

The Advisory Council of the Committee of Sponsoring Organizations of the Treadway Commission (COSO) is currently considering the final version of the Enterprise Risk Management Framework. This will detail the essential components and concepts of enterprise risk management for all organisations, regardless of size and identifies the interrelationships between enterprise risk management and internal control.

COSO engaged PricewaterhouseCoopers in May 2001 to lead the development of the Framework after concluding there is a need for a broadly recognised common structure for enterprise risk management. As part of the project's validation process, the Framework was available for public comment until mid-October. PricewaterhouseCoopers have spent the time following the closure of the public comment period making necessary revisions for final approval by the COSO Advisory Council, which is composed of representatives of each of the COSO members.

The final Framework and application guidance will be published in early 2004.

COSO is a voluntary private-sector organisation dedicated to improving the quality of financial reporting through business ethics, effective internal controls, and corporate governance. COSO was originally formed in 1985 to sponsor the National Commission on Fraudulent Financial Reporting, an independent private-sector initiative which studied the causal factors that can lead to fraudulent financial reporting and developed recommendations for public companies and their independent auditors, for the SEC and other regulators, and for educational institutions.

More information on the Enterprise Risk Management Framework can be found at www.erm.coso.org

•Date: 11th December 2003 •Region: Worldwide •Type: Article •Topic: Op.risk
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