Which of the following is true regarding the COSO enterprise risk management framework?
Which of the following is true regarding the COSO enterprise risk management framework?
The COSO enterprise risk management framework integrates with, but is not dependent upon, the corresponding internal control framework. While the two frameworks can be used together for a comprehensive approach to organizational risk management, the enterprise risk management framework is designed to stand alone if required. This independence allows for flexibility in implementing risk management processes while still being aligned with internal control principles.
D. The framework integrates with, but is not dependent upon, the corresponding internal control framework. This statement is not true. The COSO enterprise risk management framework is closely related to the COSO internal control framework. The two frameworks are designed to be integrated, with the risk management framework building upon the internal control framework. The risk management framework expands on the internal control framework's concepts and provides additional guidance for managing risks effectively.
This makes sense however, I think the question is old. I believe we only have 5 interrelated components now in COSO.