COSO Enterprise Risk Management Framework

question 38

Essay

COSO enterprise risk management framework
Debbie, Amy and Lynn all work for PPK Corporation; they recently had the conversation below about risk management. Specify the element of the COSO enterprise risk management framework that most clearly applies to each underlined phrase in the conversation.
Debbie: Our boss has asked us to come up with some ideas about how to manage risk in the company.
Amy: Ok. Let's use the COSO framework to help guide our thinking; it has eight elements: internal environment, objective setting, event identification, risk assessment, risk response, control activities, information and communication, and monitoring.
Lynn: Well, whatever we come up with, we need to let other people in the company know about it. I think we should start a newsletter or web site.
Amy: Wait a minute, Lynn. before we do anything, we need to figure out how our risk management activities are connected to the company's strategic plan.
Debbie: That's right, Amy. It's pretty clear this task is important to the boss-otherwise, she wouldn't have asked all three of us to work on it.
Lynn: Maybe we should start by thinking about the things that have happened recently to increase risk around here.
Debbie: That's a great idea. While we're at it, we should also think about the likelihood that each one will happen again.
Amy: Yeah-and then we can decide what to do about each one, like whether just to accept it or try to manage it. Of course, we'd also need to get much more specific about how to manage it.
Debbie: I just hope all the work we're about to do doesn't go to waste. The company needs a system to make sure that risk management continues after we develop a plan.
________ 1. this task is important to the boss.
________ 2. things that have happened recently.
________ 3. the likelihood that each one will happen again.
________ 4. start a newsletter or web site.
________ 5. how our risk management activities are connected to the company's strategic plan.
________ 6. get much more specific about how to manage it.
________ 7. decide what to do about each one, like whether just to accept it or try to manage it.
________ 8. a system to make sure that risk management continues.

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