Corporate Compliance Report
Corporations must be properly equipped to meet the responsibilities for internal controls. The highly visible and competitive natures of businesses today require management to achieve proficiency in various areas. Operations must be efficient and effective, reliable financial data must be compiled, while adhering to applicable laws and regulations at all times. The Council of Sponsoring Organizations (COSO) in 1992 established a framework to guide businesses, which was subsequently expanded in 2004. “COSO defines enterprise risk management as “a process effected by an entity’s board of directors, management, and other personnel, applied in strategy setting and across the enterprise, designed to identify potential events that may affect the entity, and manage risk to be within its risk appetite, to provide reasonable assurances regarding the achievement of entity objectives. This process necessarily involves both individual units within an organization and the organization as a whole” (Gauthier, 2005). This framework is designed to guide business decision makers to develop the process of internal control. The eight guides of the framework allow institutions to develop policies and initiatives in like manner. Being employed within the banking and mortgage industries allows for recognition of the various objectives businesses use to garner awareness to risks which could impede overall achievement.
Setting Internal Environment
Building upon a solid foundation is a critical component of any successful endeavor. Whether a contractor is construction a building, a young couple is raising a family or a business is developing an internal control process, setting the proper internal environment is paramount. John T. Dinner, recipient of the 2002 National Governance Award suggests that setting the proper internal tone comes from the top, the board of directors, and those policies are instituted throughout...