What is the relationship between effective enterprise risk management and improved financial reporting and transparency?
• There are natural linkages between enterprise risk management, improved financial reporting and transparency. The Enterprise Risk Management – Integrated Framework requires that organizations establish a risk appetite, measure actions and decisions against that risk appetite, and communicate results. Communication of enterprise risk management to users of financial information clearly enhances transparency. Is this intended for private organizations? • Is there any organization this is not intended for? Enterprise risk management is a process that companies of all sizes and degrees of sophistication should consider. The Framework is scalable, enabling companies to be able to match the process to the company’s complexity and sophistication. There is an intrinsic expectation that all organizations, be they for-profit, not-for-profit, government organizations, etc., work to manage risk. The Enterprise Risk Management – Integrated Framework will facilitate the process.
Related Questions
- What is the relationship between effective enterprise risk management and improved financial reporting and transparency?
- Do Executives at Top U.S. Firms Truly Understand the Value of Effective Enterprise Risk Management?
- What is the relationship between technology controls and effective enterprise risk management?
