As Part of Your Company's Effort to Design an Enterprise

question 54

Essay

As part of your company's effort to design an enterprise risk management plan using the COSO framework, you have been asked to develop an information technology tool that will monitor the plan.Use the steps in the systems development life cycle to explain how you would proceed; ensure that your discussion includes ideas specific to monitoring the ERM plan.

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Definitions:

PE Ratio

The price-to-earnings ratio, a valuation metric that compares a company's stock price to its earnings per share.

Stock Repurchase

A company's buying back of its own shares from the marketplace, which can reduce the number of outstanding shares and potentially increase the stock value.

Stock Dividend

A payment made by a corporation to its shareholders in the form of additional shares, rather than cash.

Earnings Per Share

A company's profit divided by the outstanding shares of its common stock, showing the portion of a company's profit allocated to each share of stock.