RC1G5CO

A Contextual Business Model
we have chosen a simple but holistic view of governance and management processes ( see figure 1) to illustrate integration of the COSO frameworks into the core activitiesof a business. This general business model encompasses most management processes.
The model begins with governance, which starts with the organization´s vision and mission and consists of oversightfrom the board of directors of the enterprise´s planning and operations. Also included are the activities of executive management in ensuring the effectiveness of strategy setting and theorganization´s other management processes.
Next is strategy, which is the process by which executive manegement (and, depending on the size of the enterprise, the board of directors) articulates a high-level planof achieving one or more goals consistent with the organization´s mission.
Together, the two elements of governance and strategy setting provide direction to the enterprise and clearly have a place inensuring the organization´s success in meeting the demandsand exoectations of stakeholdres.
Inside the business model are four elements based on the time-honored concept of the "Plan, Do, Check, Act,Cycle." We have described these elements as business planning, execution, monitoring, and adapting. These elements are esentially what operating management and the board.
The six Attributes of thecontextual business model introduced above are further described below:
- Governance is the act or process of providing oversight or authoritative direction or control. One author defines it as theallocation of power among the board, management and shareholders. It is often applied to describing what the board of directors and executive management does in providing direction and oversight theorganization´s affairs. Corporate governance is typically the domain of the board of directors and refers to the framework of rules and practices by which a board oversees strategy setting and the...