RIMS welcomes COSO ERM framework revision

RIMS, the risk management society , announces its support for the recent revision of The Committee of Sponsoring Organisation of the Treadway Commission (COSO) Enterprise Risk Management Framework: Enterprise Risk Management-Integrating with Strategy and Performance.

The new publication serves as an update to its 2004 Enterprise Risk Management – Integrated Framework, recognising the evolution of enterprise risk management over the past decade and the need for organisations to improve their approach to managing risk to meet the demands of an evolving business environment.

“This revision highlights the importance and value of enterprise risk management when setting and carrying out an organisation’s strategy,” said Carol Fox, RIMS vice president of Strategic Initiatives and invited participant on COSO’s advisory council on this issue. “We appreciate COSO’s inclusiveness in seeking feedback from risk management professionals, and applaud our volunteer members who took advantage of this unique opportunity to influence one of risk management’s major guidance documents.”

Developed by PwC under the direction of the COSO Board, the framework’s five-component structure considers various viewpoints and operating structures while stressing the importance of considering risk in decision-making, in the strategy-setting process and in driving performance. The revision presents ways to view risk to set and achieve objectives in the context of greater business complexity.