Produced for COSO by PricewaterhouseCoopers, the Enterprise Risk Management - Integrated Framework details essential components and concepts of enterprise risk management. It also identifies the interrelationships between ERM and internal control. Read this new article from CFOdirect to find out how strategically minded treasurers can lay the groundwork for a future transition to ERM as they finalize current mandates for internal control.
As treasurers (sometimes begrudgingly) walk down the path toward Sarbanes-Oxley compliance, they will eventually reach a critical fork in the road. The decision to walk down one path or another will make a world of difference. Deciding which path to take—the one of perfunctory compliance with Sarbanes-Oxley Section 404 internal control mandates or the strategic path toward embedding Enterprise Risk Management (ERM) into corporate governance – is a question of corporate treasury leadership. Treasurers wishing to position themselves as Chief Risk Officer (CRO) material—or, better, a permanent member of senior management's Risk Committee, at the center of a new corporate governance framework—should be willing to lead their companies down the strategic ERM path. They can prepare themselves by internalizing the Committee of Sponsoring Organizations of the Treadway Commission's (COSO) Enterprise Risk Management – Integrated Framework (the COSO Framework). This latest COSO guidance will help them to communicate a vision of risk management, rather than "control," as the foundation for sound corporate governance.
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