The survey is the first step in COSO’s project to update its 2004 ERM framework.
Although companies have a number of risk management approaches, COSO’s ERM Framework has been widely referenced and some of its principles are embedded in other industry and customized risk management frameworks.
By inviting broad-based feedback on its ERM Framework, COSO is seeking to modernize and increase the framework’s usefulness by taking into account complexities in financial transactions and developments in risk management since its framework was originally issued in 2004, and heightened expectations for management, boards of directors, and others as a result of the Dodd-Frank Act and other regulatory and industry initiatives.
How COSO’s Update of its ERM Framework will impact you and your company:
As stated in COSO’s press release issued on October 21 announcing the launch of its project to update COSO’s 2004 ERM Framework, and reiterated in COSO’s press release issued today announcing the release of its ERM survey, the ERM update project – to be led by the COSO board, supplemented by additional experts forming an advisory task force, together with the PwC project team chosen to lead this project – aims to develop tools to assist management in: reporting risk information, and reviewing and assessing the application of enterprise risk management.
Additionally, COSO’s project to update its ERM framework aims to make it more relevant in an increasingly complex business environment so organizations worldwide can attain better value from their enterprise risk management programs.
Respond to the COSO Survey!
The closing date of COSO’s ERM survey is December 20, but management, auditors, boards of directors and others can complete the survey at their earliest opportunity.
TAKE THE COSO ERM SURVEY NOW
FEI Working Group on COSO ERM in Formation
FEI, as one of the five founding members of COSO (along with the AICPA, AAA, IIA and IMA), is presently forming a working group, consisting of a cross-section of its membership, to support its participation in COSO’s ERM Update project.
The FEI Working Group on ERM provides an opportunity to become closely informed of developments on this COSO project, discuss them with peers, and to assist FEI in participating in this project through comment letters and by supporting FEI’s representative on the COSO Board, Marie N. Hollein, and our member representatives.
Working group members review and comment on COSO exposure drafts and surveys, and share and discuss their comments within the group via email and on conference calls of the working group.
Interested parties are invited to email FEI’s working group on COSO a note including your name, title, and experience working directly, or indirectly, with ERM/risk management at your current or prior position(s). Membership in FEI will be required for those selected for FEI’s working group.
Two Frameworks: ERM (new project) and Internal Control (updated 2013, supersedes ’92 Framework on Dec. 15, 2014)
Importantly, COSO’s project to update its 2004 ERM Framework, is a separate project from its updated Internal Control-Integrated Framework, published in 2013. COSO’s internal control framework is cited in SEC rules on management reports (and cross referenced in PCAOB AS5) as a suitable, generally accepted framework by which to make internal control assessments for purposes of Sarbanes-Oxley Section 404 reporting.
As previously announced by COSO when the 2013 updated Internal Control framework was issued, COSO will consider its original (1992) internal control framework, the most widely used internal control framework in the U.S. – to be superseded by the 2013 updated framework as of December 15, 2014.
Read more about the relationship between the two frameworks, and COSO’s current project to update its ERM framework, at:
Learn more about COSO’s 2013 Internal Control-Integrated Framework at the
COSO panel, taking place on Day One of this year’s FEI Current Financial Reporting Issues Conference, Nov. 17-18, 2014 in New York City.
And save the date for an FEI-BlackLine Systems COSO webcast, Dec. 16, 2014 at 2pm ET, featuring COSO Chairman Robert (Bob) Hirth and other experts. Visit www.financialexecutives.org/coso for helpful resources and updates from FEI on these and other COSO related programs.