Enterprise Risk Management Framework released to assist companies of all sizes identify, manage risks.

• Position: Committee of Sponsoring Organizations of the Treadway Commission - Book Review

In late Sept., the Committee of Sponsoring Organizations of the Treadway Commission, of which the AICPA is a member, released Enterprise Risk Management--Integrated Framework. The framework describes the essential components, principles and concepts of enterprise risk management for all organizations, regardless of size. With heightened concern and focus on risk management, the framework offers boards of directors and managements a clear roadmap for identifying risks, avoiding pitfalls and seizing opportunities to grow stakeholder value.

COSO recognizes that while many organizations may be engaging in some aspects of enterprise risk management, there has been no common base of knowledge and principles to enable boards and senior management to evaluate an organization's approach to risk management and assist them in building effective programs to identify, measure, prioritize and respond to risks. The publication provides businesses as well as other organizations, for the first time, with a principles-based framework that will enable them to identify all the aspects that should be present in every company's enterprise risk program and how they can be successfully implemented.

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