Activity
Create an effective environment
Analyse internal environment ICS ERM
Description
Comment
"The attitude and daily operating style of top management affect the extent to which actions are aligned with risk philosophy and appetite. For example, an undisciplined operating style often is associated with – and might encourage – an appetite for high risk. An effective environment does not require that risks be avoided; rather it reinforces the need to be knowledgeable about the risks associated with strategic choices and the entity’s operating environment, both internal and external. An effective environment encourages people to pursue business opportunities that align with the entity’s risk appetite."
COSO
Organisation
Responsible
Middle Management
Accountable
Senior Management
Input/Output
Input data
Risk strategy
Output data
Risk strategy