Global: COSO updates 2004's ERM framework
Source: Asia Insurance Review | Nov 2017
The Committee of Sponsoring Organizations of the Treadway Commission (COSO) has released the highly-anticipated ERM Framework: Enterprise Risk Management-Integrating with Strategy and Performance, an update to a 2004 document which has been one of the most widely-recognised and applied risk management frameworks in the world.
Developed by PwC under the direction of the COSO Board, the update highlights the importance of ERM in strategic planning and also emphasises embedding ERM throughout an organisation, as risk influences strategy and performance throughout the organisation.
“The complexity of risk has changed, new risks have emerged, and both boards and executives have enhanced their awareness and oversight of enterprise risk management while asking for improved risk reporting,” said Mr Robert B. Hirth Jr., COSO Chair. “Our overall goal is to continue to encourage a risk-conscious culture.”
The update focuses on challenges and evolving expectations of ERM 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. It is available in printed form, e-book, online subscription and pdf-licensing for large organisations, accounting and consulting firms. COSO is planning for the Framework to be translated into several languages besides English. A