Final answer:
The COSO component in question is Risk Assessment, which assists in designing efficient and cost-effective internal controls, including those for safeguarding assets.
Step-by-step explanation:
The component of COSO being referred to is Risk Assessment. This is one of the five interrelated components of the Committee of Sponsoring Organizations of the Treadway Commission's (COSO) Internal Control Framework. The purpose of the Risk Assessment component is to identify and analyze risks to the achievement of objectives, which forms the basis for determining how the risks should be managed. It involves a dynamic and iterative process for identifying and assessing risks to the organization's objectives, and determining how these risks should be managed. An effective risk assessment will help an organization to design internal controls that are both efficient and cost-effective, and will also include controls for the safeguarding of assets against the identified risks.