COSO ENTERPRISE RISK MANAGEMENT FRAMEWORK.docVIP

　　COSO ENTERPRISE RISK MANAGEMENT FRAMEWORK 　　 　　SHARE ON EMAILEMAIL SHARE ON PRINTPRINT SHARE ON TWITTERTWITTER SHARE ON FACEBOOKFACEBOOK SHARE ON LINKEDINLINKEDIN MORE SHARING SERVICESADD THIS 　　 　　RELATED LINKS 　　 　　Student Accountant hub page 　　 　　This article examines the guidance published by the Committee of Sponsoring Organisations (COSO) 　　 　　COSO 　　 　　The Committee of Sponsoring Organisations (COSO) was established in the mid-1980s, initially to sponsor research into the causes of fraudulent financial reporting. Its current mission is to: 憄rovide thought leadership through the development of comprehensive frameworks and guidance on enterprise risk management, internal control and fraud deterrence designed to improve organisational performance and governance and to reduce the extent of fraud in organisations.?　　 　　Although COSO’s guidance is non-mandatory, it has been influential because it provides frameworks against which risk management and internal control systems can be assessed and improved. Corporate scandals, arising in companies where risk management and internal control were deficient, and attempts to regulate corporate behaviour as a result of these scandals have resulted in an environment where guidance on best practice in risk management and internal control has been particularly welcome. 　　 　　THE ERM MODEL 　　 　　sa_apr12_p1_ermf-1 　　 　　COSO’s enterprise risk management (ERM) model has become a widely-accepted framework for organisations to use. Although it has attracted criticisms, the framework has been established as a model that can be used in different environments worldwide. 　　 　　COSO’s guidance illustrated the ERM model in the form of a cube. COSO intended the cube to illustrate the links between objectives that are shown on the top and the eight components shown on the front, which represent what is needed to achieve the objectives. The third dimension represents the organisation’s units, which portrays the model’s ability to focus o