COSO engaged us to update the ERM – Integrated Framework to address how the alignment of risk, strategy and performance could create opportunity for better business performance.
COSO released the updated draft Framework to the public for an 100+ day comment period. While it’s consistent with the 2004 version, it provides boards and management with the principles to manage risk, from strategy-setting through execution. It clearly establishes the connections between risk, strategy and performance to create, preserve and realize value.
Originally developed in 2004 by the Committee of Sponsoring Organizations of the Treadway Commission (COSO), the COSO ERM – Integrated Framework is one of the most widely recognized and applied risk management frameworks in the world.
The Framework provides guidance to boards and management to manage risks from strategy setting through execution and recognizes the increasing importance of the connection between strategy and entity performance.
In 2014 COSO engaged PwC to serve as the project team. The draft updated Framework - COSO Enterprise Risk Management – Aligning Risk with Strategy and Performance - addresses the need for an improved approach to managing risk as a way to help create, preserve, sustain and realize value.
COSO and PwC have long-standing engagement. In 1992, COSO first engaged PwC to develop the Internal Control-Integrated Framework and then the subsequent updated Framework in 2013.