Not yet concepts BAR

Question 1

What are the four objectives of COSO ERM and define each

Answer 1

Reporting - reliable reporting to the public
Operations - effective and efficient use of the entity’s resources
Compliance - compliance with applicable laws and regulations
Strategic - goals that align with mission of entity
ROCS to memorize

Question 2

What are the five major components of ERM?

Answer 2

C governance and culture
R review and revision
I Information and communication
S strategy and objective-setting
P Performance

Question 3

Governance and culture of ERM

Answer 3

Exercises board risk oversight
establishes operating structures
defines desired culture
demonstrates commitment to core values
attracts, develops, and retains capable individuals

Question 4

Review and revision of ERM

Answer 4

assesses substantial change
reviews risk and performance
pursues improvement in ERM

Question 5

Information and communication ERM

Answer 5

Leverages information systems
Communicates Risk Information
Reports on Risk, Culture, and Peformance

Question 6

Strategy and objective-setting ERM

Answer 6

Analyzes business context
Defines Risk Appetite
Evaluates Alternative Strategies
Formulates Business Objectives

Question 7

Performance ERM

Answer 7

Identifies Risk
Assesses Severity of Risk
Prioritizes Risk
Implements Risk Responses
Develops Portfolio View