The paper was co-authored by Protiviti Managing Director
"Our purpose in writing this paper is to relate the COSO frameworks to an overall business model and describe how the key elements of each framework contribute to an organization's long-term success," DeLoach said.
Since its inception in 1985, COSO has provided thought leadership and guidance on internal control, ERM, and fraud deterrence. Its landmark frameworks, Internal Control - Integrated Framework (2013) and Enterprise Risk Management - Integrated Framework (2004), offer a blueprint for helping organizations ensure effective controls and proficient risk management. The new thought paper provides a holistic approach to relating these frameworks to governance, strategy setting, and management processes.
"COSO's fundamental premise is that effective risk management and internal controls are crucial to sustaining an organization," COSO Chairman
Throughout the paper, the authors demonstrate how the COSO frameworks can contribute value to governance, strategy setting, business planning, execution, monitoring, and adapting processes of any organization. "This is because these two important frameworks are designed to provide reasonable assurance that objectives will be met and risk reduced to an acceptable level," Thomson said. "And that is essential to good business, effective governance, and long-term sustainability."
The authors point out that COSO frameworks use a common language for risk-focused communications, enabling directors, executive management, and internal and external stakeholders to communicate more effectively.
"The enhanced dialogue from implementing the frameworks," DeLoach said, "can lead to strengthening organizations in significant ways as they serve their mission, stakeholders, and society."
Improving Organizational Performance and Governance: How the COSO Frameworks Can Help can be downloaded for free from COSO's website, www.coso.org, as well as from the websites of COSO's five sponsoring organizations.
Formed in 1985, COSO is a joint initiative of five private sector organizations and is dedicated to providing thought leadership through the development of frameworks and guidance on ERM, internal control and fraud deterrence. COSO's sponsoring organizations are the
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