The Enterprise Risk Management — Integrated Framework was commissioned by the Committee of Sponsoring Organisations of the Treadway Commission – commonly referred to as COSO. It provides a benchmark for organisations to consider in evaluating and improving their enterprise risk management processes. A companion document, Applications Techniques, is packaged with the Framework and provides examples of leading practices in enterprise risk management.

Despite all that has been written about enterprise risk management (ERM), COSO recognised a need for a broadly accepted ERM framework in order to establish common definitions, a direction for organisations to use in determining how to enhance their risk management and criteria to enable them to evaluate whether their risk management is effective. Initiated in 2001, the project included significant primary and secondary research, extensive analysis of alternative approaches and consideration of comments received during a comprehensive public comment period. The Enterprise Risk Management — Integrated Framework is one of the few enterprise risk management frameworks that has gone through such a rigorous public review process.

The Enterprise Risk Management — Integrated Framework, authored by PricewaterhouseCoopers on behalf of COSO, details the essential components of ERM and the context in which they are effectively implemented. In addition, it sets out key concepts that relate to the effective application of the components such as establishing an ERM philosophy, a risk appetite, and a portfolio view of risk. The framework affords each organization the flexibility to implement the components using a methodology appropriate to their business model.

The ERM framework builds on COSO's previously issued framework – Internal Control — Integrated Framework – and identifies the interrelationships between ERM, internal control, and entity management.

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