I want to be sure my earlier commnent about the COSO ERM Framework are not misunderstood. I firmly believe, as do many others, that the proper role for auditors in ERM is a partners with another functions (ideally risk mgmt) as the process owners. For auditors to own the ERM process is, in my opinion, an inherent conflict of interest. Yet, the internal auditor partnership is probably the most important internal alignment necessary to success in this realm.
As for how the final framework ends up, only time will tell. I wait with anticipation, but meanwhile, I applaud the efforts of COSO and PwC in putting substantive flesh on the bones of ERM. Tactical execution guidance is now where the most help is needed.
Stay tuned.
-------------------------------
Christopher Mandel
AVP, Enterprise Risk Mgmt.
-------------------------------
Original Message-----
Sent: July 28, 2004 13:53
Subject: COSO ERM
I learned yesterday that the final revised COSO ERM framework is being published next month by PwC. I will fill you in as I learn more, but I am not optimistic that the final version will represent anything less agressive from the auditor community, regarding ERM process ownsership, an inherent conflict of interest.
-------------------------------
Christopher Mandel
AVP, Enterprise Risk Mgmt.
-------------------------------