COSO ERM framework
COSO’s framework linking risk management to strategy and performance.
The 2017 framework, Enterprise Risk Management: Integrating with Strategy and Performance, has five components (governance and culture; strategy and objective-setting; performance; review and revision; information, communication and reporting) and 20 principles.
On the exam
ERM is about risk in setting and carrying out strategy, not only about controls.
Related terms
- COSO Internal Control frameworkFive components and 17 principles of effective internal control.
- Risk appetiteHow much risk an organisation is willing to take in pursuing its goals.
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