COSO Enterprise Risk Management (ERM) Framework (2017)
Governance and Culture – COSO Enterprise Risk Management (ERM) Framework (2017)

COSO Enterprise Risk Management (ERM) Framework (2017) P4: Principle 4: Demonstrates Commitment to Core Values

The entity shows that it is committed to its core values, which show up in the actions and decisions taken throughout it; management fosters a culture that is aware of risk by keeping leadership and tone strong, embedding risk in decision-making with scenario discussion before decisions are final, holding open and honest discussions of risk that do not treat risk as inherently negative, and empowering people to take risks within appetite; the board holds the chief executive accountable for managing the entity's risk through the practices and capabilities in place, while management answers for every part of enterprise risk management; performance targets cascade with evaluation at each level so the organization holds itself accountable; communication about risk and risk-taking expectations is kept open and free from retribution, with the board given timely and complete risk information; and deviations from core values and behaviors, which occur even in committed entities, are identified, investigated and responded to consistently.

Maintained by Gerard BlokdykControl text last updated

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