COSO ERM is more structured and closely tied to strategy, governance, and performance.
ISO 31000 is more flexible and principle-based, so it can fit many types of organizations.
In practice, COSO is often used for stronger internal control, while ISO is easier to adapt.
2.
Controls help reduce inherent risk to an acceptable target or residual risk level.
They work by preventing, detecting, or correcting problems.
Their effectiveness should be evaluated by checking whether they actually lower likelihood, impact, and repeated failures.
3.
ISO defines risk management as a way to create and protect value. COSO focuses more on managing uncertainty to improve strategy and performance.
This means ISO is broader, while COSO is more linked to business objectives... Continue reading "The Tempest, Act 1" »