Since COSO released Enterprise Risk Management — Integrated Framework in 2004, organizations of all types and sizes have implemented it globally and across all industry sectors. Boards of directors and senior management have used it to enhance their organization’s ability to anticipate types of risks, manage risks and determine how much risk to accept.
Organizations should review and implement the 2017 Enterprise Risk Management — Integrating with Strategy and Performance framework because it builds on current risk management processes and integrates ERM practices across organizations. Its primary focuses help organizations not only address risk but also accelerate growth, enhance performance and invoke principles that drive strategic decision-making.
The updated framework certainly offers an opportunity to raise the bar with respect to strategic thinking and performance planning. It provides the tools to enhance an existing risk management program or implement a new program. However, each organization needs to make its own decision on how to best leverage the new framework to support its strategy and performance.