The document summarizes key concepts related to enterprise risk management, business process management, and expectancy theory. It begins by outlining the COSO enterprise risk management framework, including its eight interrelated components and providing an example of how it could be applied at a non-profit organization. It then defines business process management and presents a generalized seven-step model. Finally, it introduces expectancy theory and explains its three elements - expectancy, instrumentality, and valence - and how they relate to employee motivation.
How does Operational Risk Management fit into an organization's Strategic Planning? This presentation attempts to provide a functional and implementable response.
How does Operational Risk Management fit into an organization's Strategic Planning? This presentation attempts to provide a functional and implementable response.
This white paper explains the concepts, legal requirements, strategies, and global framework for the implementation of risk management. It also deals with fraud and reputation risk management and how the negative reputation of an entity may harm the operations and profitability.
This white paper may be useful in performing the advisory role in Risk Management and Risk Governance.
“Today’s fast-paced business environment encounters a complex and ever-changing risk landscape that may negatively impact organizational value. The only way to respond to it is by having a dynamic and holistic perspective of the risk management approach to ensure business continuity.”
– Jack Zahran, President, Pinkerton
Oliver Laloux's The 'One Approach' - Integrating Risk Management, Governance ...SAMTRAC International
Across most industries, governance, compliance and risk management, health and safety management, environmental management, and other related disciplines have been dealt with in silos, without little or no integration. This approach will be discussed during this presentation along with possible solutions.
This white paper explains the concepts, legal requirements, strategies, and global framework for the implementation of risk management. It also deals with fraud and reputation risk management and how the negative reputation of an entity may harm the operations and profitability.
This white paper may be useful in performing the advisory role in Risk Management and Risk Governance.
“Today’s fast-paced business environment encounters a complex and ever-changing risk landscape that may negatively impact organizational value. The only way to respond to it is by having a dynamic and holistic perspective of the risk management approach to ensure business continuity.”
– Jack Zahran, President, Pinkerton
Oliver Laloux's The 'One Approach' - Integrating Risk Management, Governance ...SAMTRAC International
Across most industries, governance, compliance and risk management, health and safety management, environmental management, and other related disciplines have been dealt with in silos, without little or no integration. This approach will be discussed during this presentation along with possible solutions.
Are You Ready? Implementing COSO's Updated Internal Controls FrameworkBlackLine
In this webinar, Bob Hirth, COSO Chair, will provide a brief overview of the new COSO Framework, followed by an interactive discussion around the December 15 deadline set by COSO and what this means for companies that have – and have not yet – implemented the updated framework.
In addition, participants will hear what is required under the new COSO Framework, and how those requirements relate to SEC rules for determining if the system of internal controls over financial reporting is “effective,” specifically for purposes of Sarbanes-Oxley reporting.
In this session we will discuss:
- Best practices and lessons learned working with clients as they transition to the new COSO Framework along with industry adoption rates
- How adoption of COSO 2013 provides an opportunity for companies to review and potentially improve internal controls
- How financial management software can streamline the mapping, documenting, and testing activities relating to COSO 2013
According to Worldometers' estimates for 2022, New Zealand has a population of roughly 4.9 million people. Christianism is the predominant religion in the nation, and English and Maori are the two most widely spoken languages.
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The new draft of ISO14001 makes some fundamental changes to the current standard. This presentation explores the key strategic changes and legal compliance aspects.
RISK-ACADEMY’s guide on risk appetite in non-financial companies. Free downloadAlexei Sidorenko, CRMP
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But before beginning the conversation about risk appetite, it is important to remember that most non financial organizations have already documented their appetites for different common decisions or business activities. Segregation of duties, financing and deal limits, vendor selection criteria, credit limits, treasury limits on banks, investment criteria, zero tolerance to fraud or safety risks – are all examples of how organizations set risk appetite.
What is risk appetite:
10% of the time risk appetite is imposed by laws and regulations, not set – Often risk appetite is imposed by government, regulators, markets, not set by management. Examples include zero-tolerances or limits on safety, bribery and corruption, AML, pollution, sanctions, privacy.
10% of the time risk appetite is the gentlemen’s agreement between Board and management – Boards have an important oversight role and help them set the direction and boundaries for management decision making. Those management decision making boundaries is risk appetite. Examples include deal approvals only by Board above a certain limit, limits on holding percentage of cash in certain pre-approved banks, market risk limits, credit risk limits, insurance thresholds, rules on credit limits for certain types of customers, limits on investments in different countries, etc.
80% of the time risk appetite is the risk reward trade-off for a specific decision – The key is making uncertainty around decisions presented to the Board transparent to allow decision makers choose the alternative which offers the most appropriate risk reward balance according to their individual appetites.
Download the full guide to read about documenting risk appetite, reviewing risk appetite, case studies and examples and addition video resources: Guide to risk appetite 2023
Prepare for the 2013 COSO Internal Control Framework—Start NowBrown Smith Wallace
For the first time in almost 12 years, companies that comply with COSO will need to update their internal control frameworks. A revised structure and plan ideally should be in place by summer of 2014 in order to seamlessly transition ahead of the December 15, 2014, deadline.
Is your company prepared to handle the transition from COSO92 to COSO2013 by the December 2014 deadline?
In a recent article featured in AFP Exchange magazine, Amy Ribick, manager, risk advisory services at Brown Smith Wallace, explains the significant changes in the COSO update and a three-phased approach to implementation.
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Wireless communication is a broad term that incorporates all procedures and forms of connecting and communicating between two or more devices using a wireless signal through wireless communication technologies and devices.
Features of Wireless Communication
The evolution of wireless technology has brought many advancements with its effective features.
The transmitted distance can be anywhere between a few meters (for example, a television's remote control) and thousands of kilometers (for example, radio communication).
Wireless communication can be used for cellular telephony, wireless access to the internet, wireless home networking, and so on.
ER(Entity Relationship) Diagram for online shopping - TAEHimani415946
https://bit.ly/3KACoyV
The ER diagram for the project is the foundation for the building of the database of the project. The properties, datatypes, and attributes are defined by the ER diagram.
Multi-cluster Kubernetes Networking- Patterns, Projects and GuidelinesSanjeev Rampal
Talk presented at Kubernetes Community Day, New York, May 2024.
Technical summary of Multi-Cluster Kubernetes Networking architectures with focus on 4 key topics.
1) Key patterns for Multi-cluster architectures
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This 7-second Brain Wave Ritual Attracts Money To You.!nirahealhty
Discover the power of a simple 7-second brain wave ritual that can attract wealth and abundance into your life. By tapping into specific brain frequencies, this technique helps you manifest financial success effortlessly. Ready to transform your financial future? Try this powerful ritual and start attracting money today!
2. 4-2
Outline • Learning objectives
• COSO enterprise risk
management framework
• Business process
management
• Expectancy theory
3. 4-3
Learning
objectives
3. List and discuss some basic
principles of business process
management.
4. Explain expectancy theory.
5. Apply all three topics within the
context of accounting
information systems.
1. Summarize and
explain the
importance of
COSO’s
Enterprise Risk
Management—
Integrated
Framework.
2. Define business
process
management,
including a
generalized
model of BPM.
4. 4-4
COSO ERM framework
• Definition of enterprise risk management
Enterprise risk management is a process, effected by an entity’s
board of directors, management and other personnel, applied in
strategy setting and across the enterprise, designed to identify
potential events that may affect the entity, and manage risk to be
within its risk appetite, to provide reasonable assurance regarding
the achievement of entity objectives.
What similarities & differences do you see between the
ERM and internal control definitions?
5. 4-5
COSO ERM framework
• Internal environment
• Objective setting
• Event identification
• Risk assessment
• Risk response
• Control activities
• Information and
communication
• Monitoring
What similarities & differences do you see between the
ERM and internal control frameworks?
6. 4-6
COSO ERM framework
• Internal environment
Organization’s overall
attitude toward
managing risk
• Objective setting
What the organization is
trying to achieve (in
general, not just with
respect to risk
management)
• Event identification
What could happen to
interfere with achieving
those objectives?
7. 4-7
COSO ERM framework
• Risk assessment
– How likely is each
event to occur?
– Inherent and residual
risk
– Assessed qualitatively
• Risk response
– Generic response(s) to
each risk
– Four alternatives
• Accept
• Reduce
• Avoid
• Share
– A single risk may have
multiple generic risk
responses.
8. 4-8
COSO ERM framework
• Control activities
Specific ideas for
implementing the
generic response(s)
• Information &
communication
Similar to the same
element of the internal
control framework
• Monitoring
Similar to the same
element of the internal
control framework
9. 4-9
COSO ERM framework
• Internal environment
The Board of Directors
forms a “risk
assessment” committee,
which includes both
directors and
employees.
• Objective setting
The Red Cross wants to
increase monetary
donations by 10% in the
coming year.
10. 4-10
COSO ERM framework
• Event identification
The Red Cross does not adequately identify
potential new donors.
• Risk assessment
– Inherent: high
– Residual: moderate
• Risk response
– Accept
– Reduce
11. 4-11
COSO ERM framework
• Control activities
– Accept: Acknowledge
and discuss the risk.
– Reduce: Ask each
current donor to provide
contact information for a
potential new donor.
• Information &
communication
A company’s SEC filings
and other external
communications outline the
ERM plan.
12. 4-12
COSO ERM framework
• Monitoring
On a quarterly basis, a sample of employees
completes a survey about the effectiveness of
the ERM plan; the survey results are analyzed
by the risk assessment committee.
13. 4-13
Business process management
• One definition
– A systematic approach to analyzing,
redesigning, improving and managing a
specific process
– Processes can include:
• Sales / collection
• Acquisition / payment
• Conversion
• Financing
• Human resources
14. 4-14
Business process management
Generalized model of
BPM
1) Select the process
and define its
boundaries.
2) Observe, document,
and map the process
steps and flow.
3) Collect process-
related data.
4) Analyze the collected
data.
5) Identify and prioritize
potential process
improvements.
6) Optimize the
process.
7) Implement and
monitor process
improvements.
15. 4-15
Business process management
1) Capital One wants to
improve its process for
requesting insurance
verification from
mortgage holders.
2) Capital One creates
an ordered list of the
steps it currently uses
to request insurance
verification from
mortgage holders.
16. 4-16
Business process management
3) Capital One tracks the length of time and
cost involved in its current process. It
also collects data on employee &
customer satisfaction with it.
17. 4-17
Business process management
4) A process improvement team analyzes
the data using appropriate tools (e.g.,
statistical analysis, benchmarking with
similar firms).
18. 4-18
Business process management
5) The process improvement
team suggests three ways
to improve the process.
They prioritize them for
implementation.
6) The highest priority
change is implemented.
7) The process improvement
team collects additional
data and analyzes it to
determine the success of
the implemented change.
19. 4-19
Expectancy theory
• Suggested by Victor
Vroom
• A way to conceptualize
human motivation
• So long as
organizations employ
people, understanding
human motivation will
be critical.
20. 4-20
Expectancy
theory 1. Expectancy
If I put in the effort, will I be
successful in achieving my goal?
2. Instrumentality
If I’m successful, will I be
rewarded?
3. Valence
Do I value the reward?
• Three elements
• Motivation is the
product of the
three.
• If any one of the
three is “zero,”
then motivation is
zero.
Motivation =
Expectancy X Instrumentality X Valence
21. 4-21
Expectancy
theory 1. Expectancy
If I work a lot of extra hours, will I
complete all my assigned tasks?
2. Instrumentality
If I complete all my assigned
tasks, will I get a pay raise?
3. Valence
Do I value getting a pay raise?
Here’s an
example of each
element.
