To achieve its organizational objectives, an entity must effectively address and manage the risks that pose a threat to those objectives. COSO provides a structured framework for establishing the various components of an internal control system to facilitate this process.
The COSO model illustrates the direct correlation between:
- Organizational objectives,
- Control components, and
- The specific activities or units that require internal control.
COSO elucidates the interplay between business risks and the internal control system. According to COSO, internal control serves as a dynamic process designed to instill confidence in the accomplishment of objectives within four primary categories:
- Realizing strategic objectives (Strategic).
- Enhancing the efficiency and effectiveness of business operations (Operations).
- Ensuring the reliability of financial information provision (Reporting).
- Adhering to relevant laws and regulations (Compliance).
Furthermore, organizations must demonstrate their adept handling of uncertainties to investors and stakeholders, in line with requirements like the Code Tabaksblat and the Sarbanes-Oxley Act. In the Securance approach to Enterprise Risk Management (ERM), risks are thoroughly assessed and their potential consequences are meticulously mapped. Securance employs the most current standards, methods, and techniques in the realm of risk management to accomplish this.
What Does an Enterprise Risk Management Offer?
- Enhanced insight into your organization’s critical risks.
- Qualitative and quantitative evaluation of identified risks.
- Guidance and recommendations for the current risk management practices.
- Clarity regarding the financial implications of risks for your organization.
- A foundation for designing and implementing risk management strategies.
- Support in demonstrating accountability for risk management.
Securance specializes in governance, risk, and compliance services. As a pioneer in the field since 2004, Securance is the market leader in the Netherlands and remains at the forefront of ISAE 3402 implementation and certification. In addition to ISAE 3402, Securance extends its services to encompass ISAE 3000, GDPR/AVG, ISO 27001, ISO 9001, and COSO ERM.