Under the COSO Enterprise Risk Management (ERM) framework (2017), which of the following is a principle related to the 'Governance and Culture' component?

Answer options:

Analyzes business context

Identifies risk

Leverages information and technology

Demonstrates commitment to core values

How to approach this question

Recall the 5 components of COSO ERM (GOPRO - Governance, Objective-setting, Performance, Review, Ongoing info). Map 'Core Values' to Governance/Culture.

Full Answer

D.Demonstrates commitment to core values✓ Correct

The Governance and Culture component sets the organization's tone, reinforcing the importance of, and establishing oversight responsibilities for, enterprise risk management. Demonstrating commitment to core values is a key principle here.

Common mistakes

Confusing Governance principles with Strategy or Performance principles.

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