COSO ERM-Integrated Framework Update – Now Open for Public Comment
by William Hord
June 28, 2016 01:06 pm
On 6/14/16 COSO announced their much anticipated update to their ERM Integrated Framework. They indicated in their press release that “The update, Enterprise Risk Management — Aligning Risk with Strategy and Performance, is designed to address the needs of all organizations to improve their approach to managing new and existing risks as a way to help create, preserve, sustain and realize value.”
The greater emphasis on the connection between strategy and entity performance is long overdue and certainly a place where more organizations need to be focusing. In this update COSO states you will find a greater perspective and value on such things as:
- Current and evolving concepts and applications of ERM;
- Greater insight into strategy and the role of ERM in the setting and execution of strategy;
- Enhancing the alignment between organizational performance and ERM, and;
- Accommodates expectations for governance and oversight.
Effective June 15, 2016 COSO has opened up the proposed Framework for the public to review and provide comment. You can obtain additional information in their FAQs which include details on the project, most significant updates to the Framework, and commonly asked questions. The comment period closes September 30, 2016.
You can make your comments known by providing a comment letter and/or completing the online survey questionnaire at www.erm.coso.org. I look forward to seeing all the comments because COSO will be making them public on their website during the public exposure period and for up to 90 days after.
A summary of all the public comments will be published in conjunction with the Updated Document. The COSO Board will then consider all the public comments and issue the final documents in 2017.