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accounting extra credit

accounting extra credit - This alone has caused ERM to grow...

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Extra Credit – Article Response I read an article called “Rising Expectations” and it opened my eyes to how important audits and auditing committees are to the world of business. It said that a lot of companies are assigning a new task to auditing committees: the task of risk oversight. Because the amount of risk involved with running a business continue to expand, the jobs of auditors are also growing. The article states that ERM (enterprise risk management) is growing to be an even bigger deal over the past few years because of all the global production, and international sales that take place on a day to day basis. Mattel recently had huge losses in financial markets as well as shareholder value. This has caused boards of directors to apply more control over their enterprise’s risk management programs.
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Unformatted text preview: This alone has caused ERM to grow tremendously, in a hope to turn problems around and move in a positive direction from now on in the world markets. Shareholders are putting pressure on these organizations to assess, and fix certain risks, as well as provide a possible future risk analysis. Ever since the New York Stock Exchange issued the Final Corporate Governance Rules in 2004, risk management systems have been implicated in a majority of businesses. COSO put together 8 components of risk management assessment: 1 ) Internal Environment, 2 ) Objective Setting, 3) Event Identification, 4 ) Risk Assessment, 5 ) Risk Response, 6 ) Control Activities, 7 ) Information and Communication, 8 ) Monitoring. Each one of these should help companies analyze and assess risks while they happen and even future risks....
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