Which of the following is not a basic principle of the COSO ERM framework?
A)Companies are formed to create value for society.
B)Management must decide how much uncertainty it will accept to create value.
C)Uncertainty results in risk.
D)Uncertainty results in opportunity.

Question

Quizplus · Accepted Answer

While creating value for society is important, it is not one of the five basic principles of the COSO ERM framework. The five basic principles are: (1) companies exist to create value, (2) management must decide how much uncertainty to accept to create value, (3) uncertainty results in risk but also opportunities, (4) internal environment sets the tone of an organization, and (5) risk management is an ongoing process.

Which of the Following Is Not a Basic Principle of the COSO