COSO History
When was the most recent update?
2017
How many components are in the COSO ERM Framework?
5
By reviewing entity performance, an organization can consider how well the enterprise risk management components are functioning over time and in light of substantial changes, and what revisions are needed.
Review & Revision
How many booms were given on the first question?
5
When was COSO established?
1985
How many principles are there?
20
_____sets the organization’s tone, reinforcing the importance of, and establishing oversight responsibilities for, ERM. ____ pertains to ethical values, desired behaviors, and understanding of risk in the entity.
Governance and Culture
The acceptable level of variation of a risk given overall risk appetite. It establishes metrics with upper and lower thresholds to monitor performance and inform whether escalation, response action and/or alteration to tolerance levels is required.
Risk Tolerance
What does COSO stand for?
Committee of Sponsoring Organizations of the Treadway Commission (COSO)
What does the COSO ERM Framework emphasize?
The integration of risk management with strategy and performance
ERM requires a continual process of obtaining and sharing necessary information, from both internal and external sources, which flows up, down, and across the organization
Information, Communication, and Reporting
The types and amount of risk an organization is willing to accept in pursuit of its mission. It provides a consistent measure for how much risk is acceptable for an organization or a business unit in pursuit of its objectives.
Risk Appetite
A risk appetite is established and aligned with strategy; business objectives put strategy into practice while serving as a basis for identifying, assessing, and responding to risk.
Strategy & Objective-Setting
Risks that may impact the achievement of strategy and business objectives need to be identified and assessed. Risks are prioritized by severity in the context of risk appetite. The organization then selects risk responses and takes a portfolio view of the amount of risk it has assumed. The results of this process are reported to key risk stakeholders.
Performance