This assignment is intended to help you learn to do the following:
Evaluate COSO ERM Component 2: Strategy and Objective-Setting.
Apply the principles of COSO ERM Component 2: Strategy and Objective-Setting to a business.
Identify fraud risks related to assessment.
Overview
Evaluate Your Business
Think about how you would implement COSO Risk Management Component 2: Strategy & Objective Setting for the small business you described earlier. Consider each of these principles:
Principle 6: Analyzes Business Context
Principle 7: Defines Risk Appetite
Principle 8: Evaluates Alternative Strategies
Principle 9: Formulates Business Objectives
Use these resources to guide your evaluation:
Enterprise Risk Management – Applying Enterprise Risk Management to Environmental, Social & Governance-related RisksLinks to an external site.. Refer to Pg. 12, #2, but expand to all risks you identified for your business, not just environmental, social, and governance risks.
Fraud Risk Score Cards.Links to an external site. Use Principle 2: Fraud Risk Assessment to evaluate the strength of your business’s assessment.
Fraud Examiners Manual Section 4: Fraud Prevention and DeterrenceLinks to an external site.
Use any other resources you find relevant.
Write Your Evaluation
In a Word document of approximately 1,200 to 1,600 words:
Describe how the principles should be implemented in your business. For each principle:
Describe the risks you identified.
Explain why it’s important to address these the risks.
Describe the risk management processes you would implement.
Evaluate the strength of your business’s fraud risk assessment. Summarize the conclusions you reached based on the Fraud Risk Scorecard results. What factors had you already considered? What factors will you need to address?
Be specific! Make sure that the risks, controls, and analysis are tailored to your unique business.
Formatting Guidelines
Follow APA guidelinesLinks to an external site. for line spacing, margins and paragraphs. Use Calibri 11 point as your font.
You do not need to have a title page, a running head, or page numbers.
Type your name in a page header.Links to an external site.
Action Items
Complete the assignment according to the directions in the overview.
Submit the completed first draft of your assignment. Your work will automatically be checked by Turnitin.
Access your Turnitin report by reviewing your Submission Details for this assignment. Revise your work as needed based on the feedback.
By the due date indicated, re-submit the final version of your work.