The COSO Framework

The COSO Framework, developed by the Committee of Sponsoring Organizations of the Treadway Commission, is a guide for organizations to improve their internal controls and risk management. It focuses on five key components: control environment, risk assessment, control activities, information and communication, and monitoring. By using this framework, organizations can better identify risks, ensure accurate reporting, protect assets, and comply with laws and regulations, ultimately enhancing their overall effectiveness and efficiency. In essence, it helps organizations manage risks and achieve their goals more reliably.