Using your own organization or an organization with which you are familiar, develop a report in which you outline a plan to implement enterprise risk management based on the Committee of Sponsoring Organizations of the Treadway Commission (COSO) recommendations.
You must provide an explanation of the history and application of the COSO recommendations. You must distinguish among preventive, detective, and corrective internal controls and give examples of each in the organization. If none exists, you must recommend them and explain how they would be implemented. You must recommend a preventive solution that incorporates risk mitigation. The paper must demonstrate the application of critical thinking and analysis, be well-written, and adhere to APA requirements.
Be sure to incorporate key concepts from your readings where appropriate.© BrainMass Inc. brainmass.com December 15, 2020, 3:35 pm ad1c9bdddf
The response addresses the queries posted in 1376 words with references.
//Before making an implementation report of applying enterprise risk management, you must have the knowledge about it. Hereby I am providing some introductory lines on enterprise risk management and COSO (Committee of Sponsoring Organizations of the Treadway Commission). I am also providing you an overview on this. //
Enterprise risk management is important for all the organizations as there should be measures to overcome the risk. An organization should take preventive measures to overcome the danger of risk. The level of risk depends upon the level of investment in an organization. The risk should be properly analyzed and effective steps should be implemented to avoid the risk. A good entrepreneur should know the proper management of risk. The organization for which enterprise risk management is planned in this paper is Wal-Mart. There is an association which helps in combating the financial risk known as the Committee of Sponsoring Organizations of the Tread way Commission (COSO). It was established in the year 1985 and is a U.S. Private-sector enterprise. The main aim of this organization is to examine the factors that lead to the deceitful financial accounting and to make recommendations to scale down its occurrence.
COSO has developed certain standards, criteria and internal controls to help the companies in evaluating their control systems. It is patronized and financed by five most important expert accounting organizations and associations. They are the American Institute of Certified Public Accountants (AICPA), The Institute of Internal Auditors (IIA), Financial Executives International (FEI), American Accounting Association (AAA), and The Institute of Management Accountants (IMA) (Moeller, 2007).
//It would be better if you know the history of COSO as it is required in this question. In the following paragraphs, I am providing you some details on history, key concepts and internal control system. Take a look on this and write in your own words. //
History of COSO
In the mid -1970s, the SEC and the U.S. Congress enacted campaign finance law reforms due to the questionable corporate political campaign finance practices and foreign corrupt practices. Also, in the year 1977, Foreign Corrupt Practices Act (FCPA) was enacted which criminalized the transnational bribery and required companies to implement internal control programs. In the year 1985, the National Commission on Fraudulent Financial Reporting (commonly known as the Tread way Commission) was established as a private sector initiative. The first report of the commission was published in the year 1987, which stated that the associations which ...
This response addresses the queries posed in 1376 Words, APA References