COSO- ENTERPRISE RISK

MANAGEMENT
 MEMBER GROUP 4
FIRST SECOND THIRD FOURTH FIFTH
MEMBER MEMBER MEMBER MEMBER MEMBER

ANDI DEVI OKTAVIANI ARJUN WAHYUDI ARYA MARANTIKA CITRA RAHMAWATI PUGUH ARIF WICAKSONO
(2006538056) (2006538081) (2006538094) (2006538150) (2006538466)
2006538 Metric 2
Arjun Wahyudi Presentations are tools that can be used
as lectures, speeches, reports, and more.
It is mostly presented before an
audience.

What are the highlights

GROUP MEMBER
of COSO-ERM
that differ from COSO-IC ?
Metric 3 Metric 4
Presentations are tools that can be used Presentations are tools that can be used
as lectures, speeches, reports, and more. as lectures, speeches, reports, and more.
It is mostly presented before an It is mostly presented before an
audience. audience.
2006538 Metric 2
Arjun Wahyudi Presentations are tools that can be used
as lectures, speeches, reports, and more.
It is mostly presented before an
audience.

What areGROUP
the components
MEMBER and principles
of COSO ERM? Explain briefly
Metric 3 Metric 4
Presentations are tools that can be used Presentations are tools that can be used
as lectures, speeches, reports, and more. as lectures, speeches, reports, and more.
It is mostly presented before an It is mostly presented before an
audience. audience.
The ERM Component (2004)
Enterprise risk management consists of eight interrelated
components. These are derived from the way management
runs an enterprise and are integrated with the management
process. These components are:

1. Internal Environment
2. Objective Setting
3. Event Identification
4. Risk Assessment
5. Risk Response
6. Control Activities
7. Information & Communication
8. Monitoring
 Internal • Establishes a philosophy regarding risk management. It recognizes that
unexpected as well as expected events may occur
Environment • Establishes the entity’s risk culture

Objective • Is applied when management considers risks strategy in the setting of

objectives

Setting
• Risk tolerance, the acceptable level of variation around objectives, is aligned
with risk appetite

Event • Differentiates risks and opportunities. Events that may have a negative impact
represent risks

Identification
• Events that may have a positive impact represent natural offsets
(opportunities), which management channels back to strategy setting

Risk • Allows an entity to understand the extent to which potential events might
impact objectives
Assessment • Risks are assessed on an inherent and a residual basis
 • Management selects risk responses avoiding, accepting, reducing, or

Risk Response sharing risk

• Developing a set of actions to align risks with the entity’s risk tolerances
and risk appetite

Control • Policies and procedures are established and implemented to help ensure

Activities the risk responses are effectively carried out

Information & • Relevant information is identified, captured, and communicated in a form and
timeframe that enable people to carry out their responsibilities

Communication
• Effective communication also occurs in a broader sense, flowing down,
across, and up the entity

• The entirety of enterprise risk management is monitored and modifications

Monitoring made as necessary

• Monitoring is accomplished through ongoing management activities,
separate evaluations, or both
Principles of COSO – ERM (2017)
Explain the role of risk management in
strategic planning!
 Definition Risk Management
Risk management is the process of identifying, assessing and controlling threat or
risk to an organization. These threats or risk could stem from wide variety of
resources, including financial uncertainty, strategic management errors, accidents
and natural disasters.

Definition Strategic Planning

Strategic Planning is a management tool used to manage current condition project

condition in the future, so that a strategic plan is guide that organization can use
from their current condition to work toward the next 5 to 10 years. (Kerzner, 2001)

So it means that strategic plan is designed to achieve strategic objectives. Wherever we have objective we have risk in
uncertainty that affects objectives if it occurs. We have strategic objectives that they will be affected by strategic risk.
Strategic risk will occur within the organization and in the external environment which will affect the organization ability
to achieve those strategic objectives. So management should think what risks are and make sure take account in
strategic plan.
 The Role of Risk
Management in Strategic
Planning
By implementing risk management in strategic planning, we can identify what kind of risk that will be affect
organization’s strategic objectives, so management can asses risk and control it to amount of tolerance that
allows in organization objectives.

Management have to understanding risk appetite and our flexibility around this objectives clearly important. By
doing risk management it means management can take account and understand the amount of acceptable
variability in our objectives and understand which other sources of risk that are most likely to affect these objectives
that we can build in our strategy planning. So management can maximize their chances of achieving strategic goals.
What is risk appetite?
• All entity face uncertainty. The uncertainty present both risk
and opportunity, with the potential to erode or enhance value.

• How much uncertainty can be accepted by entity to grow

stakeholder value is risk appetite

Source: www.akademiasuransi.org
How would the risk appetite affect
the company's strategies?
Strategy
steps
Thank
you!

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QUESTIONS OR CLARIFICATIONS.