COSO Framework (Committee of Sponsoring Organizations)

The COSO Framework, developed by the Committee of Sponsoring Organizations, is a guidelines system designed to help organizations improve their internal controls and manage risks effectively. It provides a structured approach to ensuring reliable financial reporting, operational efficiency, and compliance with laws and regulations. The framework centers on five key components: control environment, risk assessment, control activities, information and communication, and monitoring. By following COSO, organizations can establish a strong foundation for achieving their objectives, safeguarding assets, and maintaining trust with stakeholders through effective governance and risk management practices.