Five Components of COSO-ERM

• Control Environment:


  Ensures business processes are based on industrystandard practices.
• Risk Assessment and Management:

  Identifies and manages risks inherent in business operations.
• Control Activities:

  Implements internal controls to ensure processes meet business objectives.
• Information and Communications:


  Ensures internal and external communications adhere to legal and ethical standards.
• Monitoring:


  Involves internal and external auditing to evaluate compliance with controls