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Enterprise Risk
Management —
Integrated Framework
Executive Summary
September 2004

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Committee of Sponsoring Organizations of the Treadway Commission
(COSO)
Oversight

Representative

COSOChair

John J. Flaherty

American Accounting Association

Larry E. Rittenberg

American Institute of Certified Public Accountants

Alan W. Anderson

Financial Executives International

John P. Jessup
Nicholas S. Cyprus

Institute of Management Accountants
The Institute of Internal Auditors

Frank C. Minter
Dennis L. Neider
William G. Bishop, III
David A. Richards

ProjectAdvisory Council to COSO
Guidance
Tony Maki, Chair
Partner
Moss Adams LLP

James W. DeLoach
Managing Director
Protiviti Inc.

John P. Jessup
Vice President and Treasurer
E. I. duPont de Nemours and
Company

Mark S. Beasley
Andrew J. Jackson
Professor
Senior Vice President of
North Carolina State University Enterprise Risk Assurance
Services
American Express Company

Tony M.Knapp
Senior Vice President and
Controller
Motorola, Inc.

Jerry W. DeFoor
Vice President and Controller
Protective Life Corporation

Douglas F. Prawitt
Professor
Brigham Young University

Steven E. Jameson
Executive Vice President, Chief
Internal Audit & Risk Officer
Community Trust Bancorp, Inc.

PricewaterhouseCoopers LLP
Author
Principal Contributors
Richard M. SteinbergFormer Partner and Corporate
Governance Leader (Presently
Steinberg Governance
Advisors)

Miles E.A. Everson
Partner and Financial Services
Finance, Operations, Risk and
Compliance Leader
New York

Frank J. Martens
Senior Manager, Client
Services
Vancouver, Canada

Lucy E. Nottingham
Manager, Internal Firm
Services
Boston

FOREWORD
Over a decade ago, the Committee ofSponsoring Organizations of the Treadway Commission
(COSO) issued Internal Control – Integrated Framework to help businesses and other entities
assess and enhance their internal control systems. That framework has since been
incorporated into policy, rule, and regulation, and used by thousands of enterprises to better
control their activities in moving toward achievement of their establishedobjectives.
Recent years have seen heightened concern and focus on risk management, and it became
increasingly clear that a need exists for a robust framework to effectively identify, assess, and
manage risk. In 2001, COSO initiated a project, and engaged PricewaterhouseCoopers, to
develop a framework that would be readily usable by managements to evaluate and improve
their organizations’ enterpriserisk management.
The period of the framework’s development was marked by a series of high-profile business
scandals and failures where investors, company personnel, and other stakeholders suffered
tremendous loss. In the aftermath were calls for enhanced corporate governance and risk
management, with new law, regulation, and listing standards. The need for an enterprise risk
management...