Elements of Enterprise Risk Management

Abstract

This article aimed to study the elements of enterprise risk management by reviewing the conceptual framework of COSO 2017: Enterprise Risk Management Framework (COSO ERM 2017), as well as related researches and literatures on the elements of enterprise risk management. Organizational risk was found that, according to the concept of COSO ERM 2017, there were 5 main elements as follows: Element 1. Corporate Governance and Corporate Culture, Element 2. Corporate Strategy and Objectives, Element 3. Performance Goals, Element 4. Review and Improvement and Element 5. information, communication, and reporting, and the 5 main elements were subdivided into 20 sub-elements. Importantly, the concept of COSO ERM 2017 focused on the systematic integration of risk management and to cover all dimensions of risk management as well as being prepared to deal with situations known as "VUCA World" (Volatility, Uncertainty, Complexity, Ambiguity), where each organization can apply the above concepts as a model for management to prepare for risk events in all situations. Whether it was an existing risk event or a new risk event that may occur in the future. Moreover, it also helped to add value and enhance the organization's management to achieve efficiency and effectiveness of the organization's long-term sustainable operations.