The COSO Enterprise Risk Management—Integrated Framework comprises four key components: Strategy, Operations, Financial Reporting, and Compliance. These components integrate to create a comprehensive approach to risk management for organizations. The four categories of the COSO Enterprise Risk Management—Integrated Framework (ERM Framework) are Strategy, Operations, Financial Reporting, and Compliance.
The Committee of Sponsoring Organizations of the Treadway Commission (COSO) developed the Enterprise Risk Management—Integrated Framework to help organizations effectively manage risk and achieve their objectives. The COSO ERM Framework consists of four interrelated components: Strategy, which includes aligning risk appetite and strategy; Operations, related to the effective and efficient use of resources; Financial Reporting, ensuring the reliability of internal and external financial reporting; and Compliance, which pertains to adherence with applicable laws and regulations. Together, they form a robust approach to risk management that helps organizations anticipate and respond to potential challenges and opportunities. In essence, these components guide organizations in developing a comprehensive risk management strategy that touches on the multi-faceted nature of business operations and responsibilities.