The Chapter Illustrated the Use of the COSO Enterprise Risk

question 46

Essay

The chapter illustrated the use of the COSO enterprise risk management framework with Dreambox Creations, Inc. For each statement below, identify the element of the COSO framework that most clearly applies. You must use each element of the framework exactly one time.
1. Dreambox assigned one of its three corporate officers the responsibility for annually reviewing the plan.
2. Dreambox chose "reducing" and "sharing" as discussed in the COSO framework.
3. Dreambox developed a plan to hire additional marketing professionals whose main job would be to pursue new clients.
4. Dreambox had set a strategic goal of acquiring at least three new clients every year.
5. Dreambox planned several meetings with its staff to explain the importance of ERM, the development of the ERM plan and its implications for the firm.
6. Dreambox's management had committed to developing an ERM plan.
7. If Dreambox lacked the staff with the skills and desire to pursue new clients, they might not be able to achieve their strategic goal.
8. The potential impact of that risk was great. At an inherent level, it was also high.

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Definitions:

Per Capita Incomes

The mean income received by an individual in a specific region or nation, determined by dividing the sum of all incomes by the number of people.

Birth Rates

The number of live births per thousand of population per year.

Economic Growth

An increase in the amount of goods and services produced per head of the population over a period of time.

Population Density

The number of individuals living in a given area, typically expressed as persons per square kilometer or square mile.