Module D: How COSO Internal Control Integrated Framework Improves Organisational Performance and Governance?

Internal control is more important than ever - Boards are increasingly expected to provide oversight of enterprise risk management (ERM) and attest to the effectiveness of their companies’ systems of internal control. As the complexity of risk changes with new risks emerging, the importance of considering risk in both the strategy-setting process and in driving performance becomes even more apparent. Taking this lead, the Committee of Sponsoring Organisations of the Treadway Commission (COSO) ERM Framework, one of the most widely recognised and applied risk management frameworks in the world, has taken an initiative and updated its framework in June 2017. COSO’s fundamental premise is that effective risk management and internal controls are crucial to sustaining an organisation. The COSO framework can contribute value to governance, strategy setting, business planning, execution, monitoring, and adapting processes of an organisation. This internationally recognised internal control framework is designed to provide reasonable assurance that objectives will be met and risk reduced to an acceptable level. In essence, there should be clarity on the difference and relationship between the organisations’ assurance and other monitoring activities (the four cornerstones of corporate governance) to minimise black holes in the organisation. This is essential to good business, effective governance, and long-term sustainability. With a combination of group case study and an in- person workshop, this programme will have a short introduction of ERM - Integrating with Strategy and Performance as both the COSO Internal Control Integrated Framework and ERM COSO Framework are interlinked and will assist management and boards of directors with their respective duties for managing risk and control.

Learning Outcomes

• Explain the key points related to the COSO principles-based approach
• Identify the differences between COSO Internal Control Integrated Framework and COSO ERM Integrating Strategy & Performance
• Describe how a system of risk and internal control is being designed, implemented and monitored in the organisation
• Recognise ways to identify, analyse and respond to risks and controls in your organisation
• Develop an effective board and management oversight in your system of internal control
• Learn how to perform an assessment of an organisation using COSO to deliver an integrated assurance reporting