COSO Releases Enterprise Risk Management Supplement

June 19, 2018

A supplement to Enterprise Risk Management – Integrating with Strategy and Performance was recently published by the Committee of Sponsoring Organizations of the Treadway Commission (“COSO”). Issued as Enterprise Risk Management: Integrating with Strategy and Performance – Compendium of Examples, the new guidance features detailed examples for applying principles from the revised Enterprise Risk Management Framework. It also includes illustrations and case studies developed from industry practices recognized through comprehensive research (e.g., interviews, case studies).

The examples offer context to the industry wherein the illustrated business operates, highlights applicable principles, shows how Enterprise Risk Management (“ERM”) is integrated with the business and recaps the main benefits of ERM practices. Each example also centers on specific portions covered in the ERM Framework. Some of the industries covered include the financial services, technology, nonprofit and energy sectors. While the given examples focus on certain industries, any industries not mentioned can also benefit from the guidance.

In addition, the case studies presented describe how a certain entity adapted the principles and define a relationship between a company’s mission, vision and core values; its strategic goals and directions; and the methods used in executing its strategy.