The Applied Development Of ERM:the COSO'S ERM Framework Aligning Risk With Strategy And Performance And Its Reference

Enterprise Risk Management-Integrated Framework which the COSO Board commissioned and released in 2004 has not gained the expected acceptance over the past decade.Most enterprises only managed execution risks,did not consider risks explicitly in strategy,which were ignored by board of directors and senior managers.Recently,the complexity of risk has changed,new risks have emerged.The big risk disasters,especially the international financial crisis in 2008 and Japanese earthquake in 2011,made the boards enhance the awareness and oversight of enterprise risk management.In keeping with its overall mission,the COSO published in June,2016 Enterprise Risk Management Framework-Aligning with Strategy and Performance Draft,recognizes the increasing importance of connection with strategy and entity performance,offers a perspective on current and evolving concepts and applications of enterprise risk management to meet the demand for improved risk reporting.In fact,since 2009,COSO has kept on update working paper relating to enterprise risk management,which totally involved in this update.The state quo of enterprise risk management in Chinese enterprises is not good enough.Most of the enterprises only manage execution risks and do not embrace risk awareness culture.In 2006,the State-owned Assets Supervision and Administration Commission of the State Council released the Enterprise Risk Management Guidance for SOEs,but this regulation had some problems in both structure and contents.Besides,with enterprise risk management regulations gaining broad acceptance,Chinese enterprises do not have an efficient and effective ERM framework.This paper reviews domestic and international literatures related to enterprise risk management,systematically introduces the basic concept and innovation of Enterprise Risk Management Framework-Aligning with Strategy and Performance,puts forward some useful suggestions based on our national enterprise risk management background.