8 Component of Framework COSO

1.     Internal Environment

Is really important in the organization because it have a phylosophy and style of operational, structure, policy and procedure, also awareness to control the internal of the company

2.     Objective Settings

ERM make sure, that activity done by management is related with the purpose and this purpose set based on the entity mission with the risk appetite and it should be consisten

3.     Event Identification

What happened in internal and external that will be influencing the company’s goal, it should be identify then differenciate it into risk and opportunity

4.     Risk Assessment

Risk should be analyse with calculating the possibility of likehood and the impact side, to determine the management risk

5.     Risk Response

Management choose the risk response, avoid, receive, deduct, and developed the activities, so the risk that will be happen still being tolerate and risk appetite

6.     Control Activities

Policy until procedure was set and implemented to help and make sure risk if risk response is effective

7.     Information and Communication

Identify the relevant information, then communicate it in the time that possible if each people do theirown responsibility 

8.     Monitoring

Monitoring should be continously by the management, then also evaluate it