[dianoj225]

So used to just reading and studying key points of writing sims from NINJA, this was the first one I actually wrote on my own. So I’m just looking for some input. Thanks!

Pine Co. has hired a new manager who is interested in learning more about the Committee of Sponsoring Organizations of the Treadway Commission (COSO) Enterprise Risk Management framework, specifically the risk assessment element.

In a memo to your fellow manager at Pine, describe two key aspects of risk assessment according to the COSO framework.

MY RESPONSE:

The purpose of this memo is to address the two key aspects that comprise the risk assessment element of the Enterprise Risk Management framework set forth by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).

The first element is risk identification, which goes hand in hand with the event identification of the COSO Enterprise Risk Management framework. Certain events can affect the ability for Pine Co. to implement strategies and achieve objectives. You, as a manager, would have to decipher whether such events present themselves as opportunities or risks.

This brings us to the second aspect of risk assessment—risk analysis. After identifying an event as a risk, you would have to analyze how such risk(s) would hinder Pine Co. from achieving its objectives given its currently implemented strategies.

After you have completed the risk assessment phase, you would then have to respond to such risks. You can choose to avoid, share, or accept risks after careful analysis.

If you have any questions and would like to discuss the matter further, please do not hesitate to reach me.