A comparative analysis of COSO I and II Vs. Basel I and II. How does Enterprise Risk Management relate to Basel Capital Accord?© BrainMass Inc. brainmass.com October 25, 2018, 7:06 am ad1c9bdddf
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A comparative analysis of COSO I and II Vs. Basel I and II.
COSO is a voluntary private sector organization in the United States to improve organizational governance, business ethics, internal control, enterprise risk management, fraud, and financial reporting. COSO I was a document created in 1992 on internal control, whereas COSO II is an integrated framework for Enterprise Risk Management. COSO II has eight elements (Cendrowski Harry, Mair William C2009).
The Basel I and II have been established by The Basel Committee on Banking Supervision. This is a committee of banking supervisory authorities set up by the central bank governors of the Group of Ten countries (SANDERS, Ozdemir Bogie, Miu Peter 2008),. Basel I is the round of deliberations by central bankers in 1988 and it published minimum capital requirement for banks. This was enforced in the Group of Ten countries. In 2004, Basel II was published which was an international standard for banking regulators to control how much capital banks need to put aside for risk management ( Kenneth Carling, Jacobson Tor, Linde Jesper, and Roszbach Kasper 2002).
The essential difference between COSO and Basel is that COSO originated in the US and addresses all organizations (COSO 2004 a). On the other Basel is related to regulation of the banking industry. Basel was formed to ensure that banks have adequate resources to account for the risks that banking industry faces (Chapman, Robert J. 2006).. These resources are related to the risks to which the banks are exposed. ...
This explanation provides you a comprehensive argument relating to Enterprise Risk Management
A paper on risk management could analyze and evaluate the use of various strategies to manage financial risk or the application of enterprise risk management in an organizational context.
I have the following task, and I need some help getting started: Write a term paper, which must address theme within the context of a topic.
Theme: Risk Management
Topic: Analyze and evaluate the use of various strategies to manage financial risk or the application of enterprise risk management in an organizational context.
As a financial manager, discuss how to integrate the issue(s) into decision-making process. For example, would you use financial criteria exclusively? If so, which ones? If you would use non-financial criteria, which ones and how would you reconcile them with desired financial outcomes. Few managerial decisions have only a single solution. Also, there may be opportunity costs and risks that should be weighed.
Clearly state the issues that you are addressing and describe the organization(s) that are affected.
Where data are available, include a financial analysis that leads to your conclusion.
Where data are not available, describe in detail the type of analysis you would perform and the data needed to reach a conclusion.
Elect and defend the approach that seems most appropriate at this time. If you believe that there are evolving issues, state clearly what future actions you would recommend.
Be between 10 - 15 pages, plus appendices, exhibits, and references.
Include a one-page Executive Summary immediately following the title page that includes a statement of the major issue(s) and your specific recommendations. The content of an Executive Summary is similar to an abstract.
Properly cite reference sources (APA format): these may include course material, information from magazines, journals, and online sources. All reference sources must have a publication date no earlier than 2004.
Reuters (Yahoo will refer you here): http://www.reuters.com;
Edgar (SEC source of 10-K and other required financial reports; this is my saved "Favorite"): http://www.sec.gov/cgi-bin/srch-edgar; (EDGAR stands for Electronic Data Gathering and Retrieval)
Hoovers (general company information): http://www.hoovers.com;
Bloomberg (a good source of interest rate data): http://bloomberg.com/markets/rates/index.html;
Wall Street Journal free site: http://online.wsj.com/public/page/0,,2_0323,00.html;
Moody's (bond ratings): http://www.moodys.com;
Standard and Poors (bond ratings): http://www2.standardandpoors.com;
New York Stock Exchange: http://www.nyse.com/;
Bondpage (bond information): http://www.bondpage.com;
Federal Reserve (interest rates): http://www.federalreserve.gov/releases/h15/update/;
Vanguard bond site: http://flagship2.vanguard.com/VGApp/hnw/FundsBondsMarketSummaryTable; and
Bond Marketing Association (trade group) site: http://www.investingbonds.com