Enterprise Risk Management
If an organisation wants to achieve its objectives, it must manage and control the risks that threaten those objectives. COSO has defined the various elements of an internal control system for this purpose.
The COSO model illustrates the direct relationship between:
- The organisation’s objectives;
- The control components;
- The activities/units requiring internal control.
- COSO identifies the relationships between enterprise risks and the internal control system. COSO views internal control as a process aimed at providing assurance regarding the achievement of objectives in the following categories:
- Achieving strategic objectives (Strategic);
- Effectiveness and efficiency of business processes (Operations);
- Reliability of financial reporting (Reporting);
- Compliance with relevant laws and regulations (Compliance).
Organisations must also demonstrate to investors and other stakeholders that they properly manage uncertainties (Code Tabaksblat and the Sarbanes-Oxley Act). In Securance’s approach to Enterprise Risk Management (ERM), risks are identified and their consequences are detailed. Securance uses the latest standards, methods, and techniques in risk management.
What does Enterprise Risk Management offer?
- Insight into the significant risks of your organisation;
- Qualitative and quantitative assessment of identified risks;
- Insight and advice on the current control of risks;
- Insight into your organisation’s risk costs;
- A basis for designing and implementing risk management within your organisation;
- Assistance in accountability for risk management.
