COSO
Version 1.0.0 · Updated 2026-07-30
CORE DEFINITION
An enterprise risk management integrated framework issued by the COSO Committee (Committee of Sponsoring Organizations): eight components: 1. Internal Environment - the organization's risk culture and management philosophy 2. Objective Setting - strategic objectives aligned with the mission 3. Event Identification - identifying internal and external events affecting objectives 4. Risk Assessment - assessing the likelihood and impact of risks 5. Risk Response - selecting avoidance, acceptance, reduction, or sharing of risk 6. Control Activities - policies and procedures to ensure risk responses are executed 7. Information & Communication - identification, capture, and communication of relevant information 8. Monitoring - ongoing oversight of ERM effectiveness
SCAFFOLDING EFFECT
Reduce cognitive load
- Integrated ERM framework: issued by the COSO committee (Committee of Sponsoring Organizations) to organize enterprise risk management. - Eight components: internal environment, objective setting, event identification, risk assessment, risk response, control activities, information and communication, and monitoring. - Element detail: internal environment is the risk culture, event identification scans internal and external events, and risk response chooses avoidance, acceptance, reduction or sharing.
Anchor fast decisions
Based on the "ERM eight-component closed loop." From internal environment to monitoring, systematically identify/assess/respond to risks, aligned with objectives.
MINIMUM ACTION
In progress 0/1Practice this model in one real situation:
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Source support: Explicit
- en.wikipedia.orghttps://en.wikipedia.org/wiki/Cosoverified
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