Enterprise Risk Management – Integrated Framework
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Application Techniques
September 2004
Committee of Sponsoring Organizations of the Treadway Commission (COSO)
Oversight COSO Chair American Accounting Association American Institute of Certified Public Accountants Financial Executives International Institute of Management Accountants The Institute of Internal Auditors Representative John J. Flaherty Larry E. Rittenberg Alan W. Anderson John P. Jessup Nicholas S. Cyprus Frank C. Minter Dennis L. Neider William G. Bishop, III David A. Richards
Project Advisory Council to COSO
Guidance Tony Maki, Chair Partner Moss Adams LLP James W. DeLoach Managing Director Protiviti Inc. John P. Jessup Vice President and Treasurer E. I. duPont de Nemours and Company Tony M. Knapp Senior Vice President and Controller Motorola, Inc.
Mark S. Beasley Andrew J. Jackson Professor Senior Vice President of North Carolina State University Enterprise Risk Assurance Services American Express Company Jerry W. DeFoor Vice President and Controller Protective Life Corporation
Steven E. Jameson Douglas F. Prawitt Executive Vice President, Chief Professor Internal Audit & Risk Officer Brigham Young University Community Trust Bancorp, Inc.
PricewaterhouseCoopers LLP
Author Principal Contributors Richard M. Steinberg Former Partner and Corporate Governance Leader (Presently Steinberg Governance Advisors) Miles E.A. Everson Partner and Financial Services Finance, Operations, Risk and Compliance Leader New York
Frank J. Martens Lucy E. Nottingham Senior Manager, Client Services Manager, Internal Firm Vancouver, Canada Services Boston
Table of Contents 1 2 3 4 5 6 7 8 9 10 Introduction.................................................................................................................... 1 Internal Environment ..................................................................................................... 5 Objective...