Recently, the Committee of Sponsoring Organizations of the Treadway Commission (COSO) released its updated enterprise risk management (ERM) framework for public exposure and comment. The updated framework asserts that all three dimensions need to be considered as part of the strategy-setting process. Failure to address all three could result in unintended consequences that lead to missed opportunities or loss of enterprise value.
Why is this updated framework important to boards of directors? This issue of Board Perspectives summarizes five significant takeaways from the new ERM framework and stresses the importance of monitoring substantial changes within business processes.