MBA 560 week 6

MBA 560 week 6 - 1 Corporate Compliance Report RUNNING...

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1 Corporate Compliance Report RUNNING HEAD: CORPORATE COMPLIANCE REPORT Corporate Compliance Report University of Phoenix Online Enterprise Risk MBA/560 Tammy Wortherley July 17, 2009 Corporate Compliance Report
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2 Corporate Compliance Report Enterprise risk is an element of all associations whether small or large. Every business needs to have a map that justifies financial accountability. Enterprise risk pertains to internal control and assuring the organizations staff follows the rules. An enterprise risk management program is to offer senior management a perception of the key business risks and associated risk management practices (Ahold, 2007). Enterprise risk management (ERM) is the development of planning, organizing, leading, and controlling the actions of an organization in order to decrease the effects of hazard on an organization's capital and income. Enterprise risk management expands the method to include associated with accidental sufferers, but also financial, strategic, operational, and other risks (SearchCIO, 2007). External factors have fueled a sensitive interest by organizations in ERM. Industry and government regulatory bodies, including investors, have begun to examine company’s risk-management policies and measures. In an escalating number of industries, boards of directors are required to appraise and report on the competence of risk-management processes in the organizations they direct. (SearchCIO, 2007). The Committee of Sponsoring Organizations of the Treadway Commission (COSO) has created Enterprise Risk Management – Integrated Framework which expands on internal control, given that a more vigorous and widespread spotlight on the broader theme of enterprise risk management. While it was never proposed to and does not restore the internal control support, but rather incorporates the internal control framework within it, companies may decide to give the impression of supporting this enterprise risk management framework both to satisfy their internal control needs and to move toward a broader risk management program. (Flaherty and Maki, 2004)
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3 Corporate Compliance Report The Committee of Sponsoring Organizations of the Treadway Commission (COSO) was originally formed in 1985 to sponsor the National Commission on Fraudulent Financial Reporting, an independent private sector initiative which studied the causal factors that can lead to fraudulent financial reporting and developed recommendations for public companies and their independent auditors, for the SEC and other regulators, and for educational institutions (COSO, 2006). The National Commission was jointly sponsored by five major professional associations in the United States, the American Accounting Association, the American Institute of Certified Public Accountants, Financial Executives International, The Institute of Internal Auditors, and the National Association of Accountants (now the Institute of Management Accountants). The Commission was wholly independent of each
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This note was uploaded on 11/13/2010 for the course IT 6410 taught by Professor Bebble during the Spring '10 term at Walden University.

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MBA 560 week 6 - 1 Corporate Compliance Report RUNNING...

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