Editor’s Note: This week, COSO released for comment the much-anticipated update to its ERM Framework. I asked Bob Hirth, Chairman of COSO, if he would share his thoughts with us on the new framework. Bob graciously agreed. — Jim
After 18 months of hard and focused work with our advisory council and official observers, COSO is releasing the public exposure draft of its revised enterprise risk management (ERM) framework. This is truly a leading-edge piece of thought leadership on ERM and will help all organizations improve the way they develop and set strategy, make decisions, manage risk, and enhance their performance overall. It also will aid them in creating a risk aware culture throughout their organization and developing a discipline around effective ERM.
The exposure draft introduces five components and 23 principles of effective ERM to which any organization can compare themselves and develop a plan to improve their ERM practices. In turn, this should help them meet more of their key objectives over time.
Please visit our COSO ERM website for information on how to obtain a copy of the draft and participate in the comment process. The comment period will end September 30.