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Customizing ERM.

Companies looking to implement an enterprise risk management (ERM) strategy in order to better deal with risks that have the capability of affecting an entire organization have often looked to the integrated framework published by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). However, as useful as the COSO framework is, it represents only a start for most companies. Customizing an ERM solution can help businesses realize that implementing the strategy is not simply a matter of creating new processes, but of integrating those processes into currently functioning business operations. Companies looking for ideas on how to adapt the COSO framework should look to a wide variety of companies, not only their immediate competitors. Those companies that adopted ERM strategies before the publication of the COSO report may be particularly fruitful research subjects, note analysts. Starting a pilot program based on the COSO framework is a good jumping-off point for ideas on how to adapt it. Employee feedback on ways the framework can be changed to better suit the needs of the company can be reviewed and implemented on a periodic basis.

Source: Business Finance; Joanne Sammer
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Title Annotation:enterprise risk management
Publication:Risk Management
Article Type:Brief article
Geographic Code:1USA
Date:Aug 1, 2006
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