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Enterprise Risk Management Framework Update Issued

The Committee of Sponsoring Organizations of the Treadway Commission has issued an update to its enterprise risk management (“ERM”) Framework, Enterprise Risk Management–Integrating with Strategy and Performance (“ERM Framework”). Building on the previous version, the update is designed to help companies with managing their risks and create and preserve value. Structured in five components with different viewpoints and operating structures the updated ERM Framework features opinions on the present concepts and applications of enterprise risk management. In addition, the update covers challenges of enterprise risk management that business leaders and boards currently face, such as economic market changes, and evolving. Read More.

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Memo of Understanding on Sustainability and ERM Signed

On April 7, the Committee of Sponsoring Organizations of the Treadway Commission (“COSO”) and the World Business Council for Sustainable Development (“WBCSD”) signed a Memorandum of Understanding to help companies with sustainability and enterprise risk management (“ERM”) issues. The collaboration will focus on the development of interpretive guidance regarding embedding sustainable development matters into COSO’s Enterprise Risk Management Framework. This effort will serve as the basis for uniting the way businesses consider sustainability concerns in their risk management processes and how these risks are disclosed to investors. More on the COSO and WBCSD’s Memorandum of Understanding is available in the official press release.

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Exposure Draft for Proposed ERM Framework Update Released

The Committee of Sponsoring Organizations of the Treadway Commission (“COSO”) has issued an exposure draft addressing risks that have emerged since the 2004 release of its Enterprise Risk Management – Integrated Framework. Released as Enterprise Risk Management—Aligning Risk With Strategy and Performance (Exposure Draft), the Exposure Draft offers views on the present concepts and applications of enterprise risk management, as well as revises the definitions of risk and enterprise risk management. The Exposure Draft also introduces components and principles reflecting how risk management thinking and practices have evolved. COSO expects the updates to help organizations increase their awareness and oversight of. Read More.

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Nonprofits Slow to Implement Enterprise Risk Management

Based on a recent survey by the North Carolina State University’s ERM Initiative for the American Institute of CPAs, only 13 percent of nonprofits have implemented a formal enterprise risk management (ERM) process. Conversely, 52 percent of public companies and 43 percent of financial services companies surveyed have employed an ERM. Addressing the low rate at a nonprofit conference last month, WeiserMazars consulting partner Bob Cummings identified six ways nonprofits can execute and maintain ERM: Have a risk management governance structure; Follow a risk management framework; Continuously identify risk and the risk event universe; Create and manage a risk profile;. Read More.

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