CS Professional · Environmental, Social and Governance (ESG) - Principles and Practice · Risk Management
Sunrise Textiles Ltd, a listed company in Surat, wants a framework that links risk management to strategy-setting and performance across the whole enterprise, organised around five components: governance and culture; strategy and objective-setting; performance; review and revision; information, communication and reporting. Which framework is the company using?
The company is using the COSO ERM Framework of 2017. It integrates risk with strategy and performance through five components: governance and culture, strategy and objective-setting, performance, review and revision, and information, communication and reporting. Basel III concerns bank capital and is irrelevant here.
- ACOSO ERM Framework (2017) 'Enterprise Risk Management - Integrating with Strategy and Performance'Correct
- BISO 31000 risk-treatment cycle limited to insurance cover
- CBasel III capital adequacy framework
- DThree-lines-of-defence model applied only to internal audit
Explanation
The COSO 2017 ERM framework is built on five interrelated components: governance and culture, strategy and objective-setting, performance, review and revision, and information, communication and reporting. Basel III deals with bank capital, so it does not fit a textile company. The three-lines model is a role-allocation concept, not this five-component structure.
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