RIMS applauds update to enterprise risk management standard
The Risk & Insurance Management Society Inc. on Wednesday said it supports a recent revision of an enterprise risk management framework.
The revision of The Committee of Sponsoring Organizations of the Treadway Commission Enterprise Risk Management Framework, “Enterprise Risk Management-Integrating with Strategy and Performance,” serves as an update to the 2004 Enterprise Risk Management – Integrated Framework publication and recognizes “the evolution of enterprise risk management over the past decade and the need for organizations to improve their approach to managing risk to meet the demands of an evolving business environment,” RIMS said in a statement.
The framework’s five-component structure, developed by consultancy PricewaterhouseCoopers L.L.P. under the direction of the Treadway Commission board, stresses the importance of considering risk in decision-making, in the strategy-setting process and in driving performance, according to RIMS. The revision presents ways to view risk to set and achieve objectives in the context of greater business complexity, the statement said.
“This revision highlights the importance and value of enterprise risk management when setting and carrying out an organization’s strategy,” Carol Fox, RIMS’s vice president of strategic initiatives, said in the statement. Ms. Fox is also an invited participant on the commission’s advisory council on this issue.
“We appreciate COSO’s inclusiveness in seeking feedback from risk management professionals, and applaud our volunteer members who took advantage of this unique opportunity to influence one of risk management’s major guidance documents,” Ms. Fox said in the statement.