Summary
This document is a guide that outlines various enterprise risk management (ERM) frameworks that organizations can consider for their risk management approaches. It discusses three widely recognized frameworks: the COSO ERM framework, ISO 31000, and the UK Orange Book. The COSO framework defines ERM as a culture integrated with strategy-setting and performance, detailing five interrelated components that guide organizations in managing risk effectively. The ISO 31000 framework presents a cyclical process for risk management that emphasizes leadership support and continuous improvement. The UK Orange Book framework focuses on the identification and management of risks and opportunities, emphasizing collaboration and informed decision-making. Additionally, the document introduces the Three Lines Model, which delineates roles and responsibilities within risk management and internal controls, highlighting the importance of operational management in risk ownership and the oversight functions of the second and third lines. These frameworks collectively provide a structured approach to effective risk management.
