Final answer:
The COSO-ERM framework's internal environment includes factors like management's risk appetite, ethical values, and compliance with the SEC, which an organization can control. However, external influences, which are beyond the organization's control, are not part of the internal environment; hence, 'a. External influences' is not considered part of the COSO-ERM internal environment.
Step-by-step explanation:
The question 'Which of the following is not considered the Internal Environment in COSO-ERM?' pertains to the Concept of the internal environment as defined within the framework of the Committee of Sponsoring Organizations of the Treadway Commission's Enterprise Risk Management (COSO-ERM).
The internal environment can be thought of as the tone of an organization, influencing the risk consciousness of its people. It is the foundation for all other components of enterprise risk management.
In the context of COSO-ERM, elements such as 'management's risk appetite', 'ethical values', and 'compliance with the SEC' are all factors that reside within the internal environment. They are aspects that an organization can control and influence through its policies, culture, and procedures.
However, the element 'external influences' falls outside the scope of the internal environment. It relates to the broader business, economic, political, and social conditions that an organization operates within, which are typically beyond the organization's control.
Therefore, 'a. External influences' is the correct answer as it is not considered part of an organization's internal environment within the COSO-ERM framework.