2 The 2004 ERM Framework

instrumental bluegrass, hypnagogic shoegaze, acoustic chicago blues cape verdean, afrikaner folk drill

Listen on 93

Lyrics

[Verse 1]
Back in two thousand four, COSO took a leap
Extended their control model, made it broad and deep
Eight components in a cube, framework crystallized
Risk management got a makeover, enterprise-wide

[Chorus]
Internal Environment sets the tone
Objective Setting carved in stone
Event ID and Risk Assessment too
Risk Response and Controls review
Info flows and Monitoring's eye
Eight components reaching high
The cube that promised to align
Every risk in perfect time

[Verse 2]
Internal Environment builds the foundation ground
Objective Setting makes the targets crystal sound
Event Identification spots what could go wrong
Risk Assessment weighs the impact, measures strong

[Chorus]
Internal Environment sets the tone
Objective Setting carved in stone
Event ID and Risk Assessment too
Risk Response and Controls review
Info flows and Monitoring's eye
Eight components reaching high
The cube that promised to align
Every risk in perfect time

[Bridge]
But critics called it process-heavy, hard to use
Too tightly wound around controls, easy to confuse
Operationalize the framework? Companies would stumble
The cube looked neat on paper but made practice crumble

[Verse 3]
Risk Response chooses strategies to deploy
Control Activities execute without decoy
Information Communication keeps the data flowing
Monitoring watches closely, keeps the system knowing

[Chorus]
Internal Environment sets the tone
Objective Setting carved in stone
Event ID and Risk Assessment too
Risk Response and Controls review
Info flows and Monitoring's eye
Eight components reaching high
The cube that promised to align
Every risk in perfect time

[Outro]
Widely adopted but flawed in execution
Set the stage for twenty-seventeen's revolution

← 1 Origins of COSO | 3 The 2017 Revision: Strategy and Performance →