The US Public Sector continues to operate in an environment in which mission complexity and service delivery requirements are expanding, while resources continue to be constrained. At the same time, demands for transparency, increased stakeholder engagement, and the rapid pace of change increasingly impact the ability of Agency leaders to effectively manage their mission and mission support environments. These dynamics indicate unprecedented levels of risk in achieving target performance outcomes.
Staying in front of these risks requires an organizational culture that embraces transparency about risks, permitting them to be identified and aggregated so that the leaders have the information they need to make the most well-informed decisions at any point in time. Organizations also require the processes, tools, and standards in which to facilitate this flow of information. PwC – a leading providing of risk consulting services in both the public and private sectors – has offerings specifically geared to addressing the mission critical challenges.
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.
There are four big reasons why you need to pay attention to the COSO ERM Framework update. Find out what they are here: pwc.com/coso-erm