Which of the following best pairs an element of the COSO enterprise risk management framework with an example of that element?
A)Control activities, developing a budget for the ERM plan
B)Information and communication, annual management retreats focused on improving the ERM plan
C)Monitoring, annual management retreats focused on improving the ERM plan
D)Internal environment, posting SEC filings on the company web site

Question

Quizplus · Accepted Answer

Monitoring is the element of the COSO enterprise risk management framework that involves ongoing tracking of the effectiveness of the ERM plan. Annual management retreats focused on improving the ERM plan would be an example of a monitoring activity, as they would provide an opportunity to assess the plan's successes and failures from the previous year and identify areas for improvement going forward. Control activities involve things like developing policies and procedures for managing risk, while information and communication relates to processes for gathering and disseminating information about risk throughout the organization. Internal environment pertains to factors like the company's culture, leadership, and tone at the top. Posting SEC filings on the company website would not be a good example of an internal environment element, as it relates more to regulatory compliance than to the company's broader risk management practices.

Which of the Following Best Pairs an Element of the COSO