The COSO Framework for Internal Control
February 12, 2025
Motivation is a very important for an organization because of the following benefits it provides: Puts human resources into action Every concern requires physical, financial and human resources to accomplish the goals. It is through motivation that the human resources can be utilized by making full use of it. This can be done by building […]
Sequence of sudden unwanted events leading to major disturbances at the workplace is called crisis. Crisis arises on an extremely short notice and triggers a feeling of fear and uncertainty in the employees. It is essential for the superiors to sense the early signs of crisis and warn the employees against the same. Once a […]
A major characteristic of effective teams is clear expectations about the roles played by each team member. In such a team, action is taken and clear assignments are made. These roles are duly accepted as well as carried out. Work needs to be distributed fairly among team members, as per each person’s skill and capability. […]
The developed countries are identified by certain parameters like highly developed economy, greater technical infrastructure, high GDP and net income per capita, level of industrialization and also the standard of living of the people. Development and modernization of a state has an obvious and significant impact on its politics, culture and society. Subsequently, these changes […]
The pioneering scholar of the theory of decision making in organizations, was Herbert Simon. He was born in Milwaukee, Wisconsin and was one of the most celebrated political scientist, economist, sociologist and also a psychologist. His body of work covers topics from administration to cognitive psychology to artificial intelligence. He was awarded the Nobel Memorial […]
Once an organization decides to go for Enterprise Risk Management, the challenge is the implementation. At the ground level there are lots of considerations in successful implementation of the same. These considerations vary with the organizations; however the following more or less remain the same:
Successful ERM implementation requires a revamp that may cause the above mentioned to become defensive. There is thus a need for coordinating different departments, educating them and promoting them for more initiative and cooperation.
For example, no one could have thought of risks like the criminal tampering of products in pharmaceutical industry! In risk assessment the challenge is to identify and contemplate of such unthinkable events.
Similarly an operational inefficiency that goes unnoticed for long can lead to production deficit. These are risks that are difficult to estimate in terms of their likelihood and degree of impact. Such risks can be better dealt with qualitative analysis to determine the relative possibility of occurrence.
Capital and reinsurance markets, for example, are not adequate to support an organization in its risk transferring mechanism. These markets need due evolution in terms of products and services with time. In case of operational and strategic risk the transfer mechanism is even more inappropriate.
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