IMA Contributes to COSO Newly-Released ERM Framework Update
Thursday, September 7, 2017
Stern Strategy Group
First revision since 2004 addresses evolution of Enterprise Risk Management
Montvale, N.J., September 7, 2017 –The Committee of Sponsoring Organizations of the Treadway Commission’s (COSO) released its highly anticipated Enterprise Risk Management (ERM) Framework: Enterprise Risk Management-Integrating with Strategy and Performance on September 6. As a co-sponsoring organization of COSO, IMA® (Institute of Management Accountants) contributed to the updated framework, helping organizations create, preserve, and realize value while improving their approach to managing risk in today’s evolving business environment.
Recognizing that the complexity of risk has changed, the Framework addresses the evolution of ERM, the benefits that can be achieved, and the need for organizations to improve their approach to managing risk. It is organized into five easy-to-understand components that accommodate different viewpoints and operating structures to enhance strategies and decision-making.
In addition to IMA’s overall commitment to moving the accounting profession forward and in support of the Framework, several members of IMA’s Global Board of Directors contributed to the updated Framework as participants in the COSO ERM-Integrated Framework Update Advisory Group.
“The new ERM guidance shows the evolution of our profession – both of which need to continue to evolve from value preservation to value creation,” said Patrick Stroh, CMA, IMA Global Board of Directors member who served on the Advisory Group. Stroh is also president of Mercury Business Advisors, Inc. “This new guidance is aimed at having more strategic and innovative discussions around risk appetite and total value proposition management.”
Jane Karli, CMA, IMA and Advisory Group member and director of investment operations for Athene USA, said, “COSO has created another quality, forward-looking product with the updated ERM framework that can easily transition from board member to practitioner. I appreciate how this Framework stresses the importance of ERM in strategic planning and embedding it throughout an organization.”
IMA CEO and President Jeff Thomson also presented the Framework to Chinese finance executives in support of COSO’s mission to provide guidance and thought leadership to organizations.
The update focuses on challenges today’s business leaders and boards face, including shifts in economic markets, evolving technologies, and changing demographics.
“Management accountants need solid knowledge in ERM, strategy, and organizational culture to make the best decisions in business. This new Framework will enable professionals – at organizations of all sizes, structures, and business models – to contribute to strategic processes and deliver value to their stakeholders,” said Sandra B. Richtermeyer, CMA, CPA, Ph.D., IMA’s representative on the COSO Board, former IMA chair, and current dean of the Manning School of Business at UMass Lowell.
The Framework document is available in printed form, e-book, online subscription, and pdf licensing for large organizations, accounting, and consulting firms. For additional information on the Framework, please visit www.coso.org.
About IMA® (Institute of Management Accountants)
IMA, the association of accountants and financial professionals in business, is one of the largest and most respected associations focused exclusively on advancing the management accounting profession. Globally, IMA supports the profession through research, the CMA® (Certified Management Accountant) program, continuing education, networking and advocacy of the highest ethical business practices. IMA has a global network of more than 85,000 members in 140 countries and 300 professional and student chapters. Headquartered in Montvale, N.J., USA, IMA provides localized services through its four global regions: The Americas, Asia/Pacific, Europe and Middle East/India. For more information about IMA, please visit www.imanet.org.
Originally formed in 1985, COSO is a voluntary private sector organization dedicated to improving organizational performance and governance through effective internal control, enterprise risk management and fraud deterrence. COSO is jointly sponsored by the American Accounting Association (AAA), the American Institute of Certified Public Accountants (AICPA), Financial Executives International (FEI), the Institute of Management Accountants (IMA), and The Institute of Internal Auditors (IIA). For more information, visit www.COSO.org.