Question

Which of the following is not a basic principle of the COSO ERM framework?

a. Uncertainty results in risk.
b. Companies are formed to create value for society.
c. Management must decide how much uncertainty it will accept to create value.
d. Uncertainty results in opportunity.

Answer 1

The correct answer is letter "B": Companies are formed to create value for society.

Step-by-step explanation:

The Committee of Sponsoring Organizations (COSO) is an international acknowledgment organism where basic risk regulating frameworks and accomplishment in organizational internal control matters are established. When it comes to Enterprise Risk Management (ERM) the committee proposes key principles and concepts for clear guidance.

Creating value for society is not included in one of the core objectives of the COSO ERM.