Frameworks Essay

262 WordsJul 18, 20122 Pages
Element five - Effective and efficient framework Maintaining an effective and efficient framework is an essential step to the risk management process: “setting forth how all important risk should be identified, assessed, responded to, and controlled” (Committee of Sponsoring Organizations (COSO), 2010). Operating within this framework, Non-Linear Pro will ensure that its risk management processes are adequate and functioning correctly by implementing fundamental principles that will allow the company to achieve its organizational objectives. These principles are based on the company’s ability to be well documented, use appropriate technology, have defined roles and responsibilities, and coordinate approaching issues systematically within the company (Harb, 2008). Element six - Risk management applied in practice Risk management is a critical element of the organizational stability for a company. When approaching issues that encompass the risks involved with production industries, companies, such as Non-Linear Pro, need to “recognize that an effective enterprise risk management (ERM) process must be applied within the context of strategy setting” (Committee of Sponsoring Organizations (COSO), 2010). In other words, companies need to integrate control frameworks and reporting systems into their organization’s strategic plans; for example, companies can facilitate risk workshops, offer support and coach management to staff, and review the management of key risks (Harb, 2008). Committee of Sponsoring Organizations (COSO) (2010). COSO's Enterprise Risk Management- Integrated Framework. Retrieved from http://www.coso.org/erm-faqs.htm Harb, T. (2008). 7 Essential Elements of ERM and the role of Internal Audit. InConsult. Retrieved from

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