BP5 Ch7 - TABLE 7.1 COSO ENTERPRISE RISK FRAMEWORK BASIC ELEMENTS Focus How does an enterprise achieve its objectives DIMENSION Strategic COMPONENT

Info iconThis preview shows pages 1–4. Sign up to view the full content.

View Full Document Right Arrow Icon
Focus: How does an enterprise achieve its objectives? DIMENSION Strategic Operations Reporting Compliance COMPONENT Internal Environment Objective Setting Event Identification Risk Assessment Risk Response Control Activities Information Monitoring Enterprise Risk Management – Integrated Framework: Executive Summary , Committee of Sponsoring Organizations of the Treadway Commission, 2004 TABLE 7.1 COSO ENTERPRISE RISK FRAMEWORK – BASIC ELEMENTS
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
RISK FOCUS/CATEGORIES AICPA/ CICA INSTITUTE OF INTERNAL AUDITORS Company Objectives x Areas of Impact: Reputation Assets, Revenues, Costs Performance Stakeholders x x x x Sources of Risk: Environmental Strategic Operational Informational Financial x x x x x x x Specific Hazards or Perils: Lawsuits Fire Theft Earthquake/natural disasters x x x x x Degree of Control over the Risk Little, Some, Great x Documentation x TABLE 7.2 IDENTIFICATION OF BUSINESS RISKS
Background image of page 2
PHASE 1 Develop a projected, ranked understanding of stakeholder interests/expectations Identify Rank: Urgency, power, legitimacy Dynamic analysis Confirmation PHASE 2 Compare activities to expectations to identify ethics risks and opportunities Performance: Inputs, outputs, quality Hypernorm: Honesty, fairness, compassion, integrity, predictability, responsibility Reputation Driver: Trustworthiness, credibility, reliability, responsibility PHASE 3 Reports by • Stakeholder group • Product or service • Corporate objective • Hypernorm value • Reputation driver FIGURE 7.1 ETHICS RISK AND OPPORTUNITY IDENTIFICATION AND ASSESSMENT
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 4
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 03/19/2010 for the course AC530 AC530 taught by Professor Peoples during the Spring '10 term at Keller Graduate School of Management.

Page1 / 11

BP5 Ch7 - TABLE 7.1 COSO ENTERPRISE RISK FRAMEWORK BASIC ELEMENTS Focus How does an enterprise achieve its objectives DIMENSION Strategic COMPONENT

This preview shows document pages 1 - 4. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online