by Ben J. Carnevale, Contributing Writer
Just recently, the Committee of the Sponsoring Organizations of the Treadway Commission (“COSO”) produced a new “thought paper” on risk management, offering ideas on how companies can better address and implement risk mitigation efforts.
The Treadway Commission (… also known as the National commission on Fraudulent Financial Reporting) is a special committee formed in 1985 in the United States to investigate the underlying causes of fraudulent financial reporting. The commission was named after its chairman, former SEC commissioner James Treadway. The commission’s original report, published in 1987, stressed the need for strong and independent audit committees for public companies.
The co-authors (Deloitte & Touche and COSO) of the more recent report provide ideas for corporate leadership on risk assessment approaches and practices and apply the principles of the Enterprise Risk Management (“ERM“) originally published by COSO in 2004.
Bottom line is that this report focuses on the risk assessment processes which help many companies better determine how much impact those risks may have for that organization, and, then also, helps companies focus their attention on prioritizing those risks so that the most important risks and opportunities are addressed accordingly.
Click here to download and read this free report entitled “Risk Assessment in Practice”.
Please pass this information along to those risk management team members in your organization so that, perhaps, they can add it to their resource reference library and receive a fresh look at how to address this most important topic of risk for all organizations.
And, given the emphasis that COSO has on the private sector, you may also want to share this information with those PS-Prep strategy planning team members in your organization.
Founded in 1985, COSO is a joint initiative of five private sector organizations and is dedicated to providing thought frameworks, guidance, and thought leadership for ERM, internal control, and fraud deterrence. COSO comprises The Institute of Internal Auditors (IIA), the American Accounting Association (AAA), the American Institute of Certified Public Accountants (AICPA), Financial Executives International (FEI), and the Institute of Management Accountants (IMA).