ISO and COSO updates: value creation at the center of the revision
A revised standard ISO 31000 is expected to be published in February 2018. This follows distribution of the Final Draft International Standard of the ISO 31000 on 17 October to all national standardisation bodies for an eight weeks approval process which will end on 13 December. FERMA contributed to the consultation phase by submitting the consolidated comments of eight FERMA member associations in May 2017.
Improvements to the standard relate to value creation which becomes the overall principle of risk management, while the content and structure continue to provide generic guidance for risk management. The concepts of leadership and commitment have also been more precisely described to fit with a better integrated approach of risk management.
The new COSO ERM Framework: Enterprise Risk Management–Integrating with Strategy and Performance was released on 6 September, updating the previous one from 2004: Enterprise Risk Management–Integrated Framework.
Focusing on strategy and performance, the new edition relies on five components to reflect the different viewpoints and operating structures of an organisation. By enhancing strategies and decision-making, embedding the ERM throughout organisation would support the creation, preservation, and realisation of value.
The document is available in printed form, e-book, on-line subscription and pdf licensing for large organisations, accounting and consulting firms at www.coso.org .
ISO 31000 revision: information available at WG 2 Core Risk Management Standards
New COSO ERM announcement available at COSO Issues Important Update to ERM Framework First revision since 2004 addresses evolution of enterprise risk management