COSO publishes risk assessment guide
Back in 2004, COSO published a guide to enterprise risk management to help companies design and implement enterprise-wide approaches to risk management.
COSO's Enterprise Risk Management – Integrated Framework in 2004 sought to define components of ERM, develop key concepts, provide a common lexicon, and offer clear direction enterprise risk management. COSO has just followed up on that effort with a new guide, Risk Assessment in Practice, that focuses more on the risk assessment process to help companies better ascertain risks that management should rivet their attention on.
The guide notes that, "Strategic-minded enterprises do not strive to eliminate risk or even to minimize it, a perspective that represents a critical change from the traditional view of risk as something to avoid. Rather, these enterprises seek to manage risk exposures across all parts of their organizations so that, at any given time, they incur just enough of the right kinds of risk—no more, no less—to effectively pursue strategic goals."
Before you can understand your true risk-reward frontier, you have to be able to logically assess your risk portfolio. The goal is to provide executives "with an overview of risk assessment approaches and techniques that have emerged as the most useful and sustainable for decision-making."
- here's the guide