Sorcha Systems Ltd’s Post

Understanding the COSO Framework — The Backbone of Internal Control In the world of internal audit, risk management, and governance, the COSO Framework stands as one of the most widely recognized models for establishing an effective system of internal control. Developed by the Committee of Sponsoring Organizations of the Treadway Commission (COSO), the framework helps organizations achieve objectives, manage risks, and strengthen governance across three key categories: 🎯 1️⃣ Operations: Effectiveness and efficiency of operations 📊 2️⃣ Reporting: Reliability and integrity of financial and non-financial reporting ⚖️ 3️⃣ Compliance: Adherence to laws, regulations, and internal policies At its core, the COSO Framework is built on five interrelated components, each supported by 17 principles: 🧩 1. Control Environment The foundation of all internal control. It reflects the organization’s culture, integrity, ethical values, governance, and commitment to competence. “Tone at the top sets the strength of control.” 🔎 2. Risk Assessment A dynamic process for identifying and analyzing risks that may hinder the achievement of objectives. It involves setting clear objectives, identifying risks, assessing their likelihood and impact, and managing change. ⚙️ 3. Control Activities These are the policies, procedures, and actions that help ensure management directives are executed. They exist at all levels and include approvals, authorizations, reconciliations, verifications, and segregation of duties. 💬 4. Information & Communication Ensures that relevant, timely, and quality information flows across the organization — both upward and downward — enabling informed decision-making. 🔁 5. Monitoring Activities Continuous or periodic evaluations of internal control performance to ensure that controls remain effective and deficiencies are addressed promptly. 💡 Takeaway: The COSO Framework is more than a compliance checklist — it’s a blueprint for embedding control consciousness into every process and decision. #InternalAudit #COSO #RiskManagement #Governance #InternalControl #Compliance #AuditProfessionals #Leadership #AuditEoperations

COSO needs to be embraced at all levels of the organization not just limited for the use by assurance providers.

🔑 Key Strategies for Building Risk Ownership in Your Firm The FCA emphasises that firms must have “robust governance arrangements... and effective processes to identify, manage, monitor and report risks.” FCA Handbook, SYSC 4.1.1 R But what does good risk management really look like? 👉 How do you encourage your people to take ownership and raise issues? 👉 How can firms embed governance and accountability at every level? In our blog, Ruleguard’s Head of Risk and Compliance Priscilla Gaudoin FICA Certified explores how firms can foster true risk ownership by: ✅ Outlining six crucial steps to build a robust governance structure ✅ Aligning business strategy with effective risk management ✅ Promoting a strong corporate culture ✅ Implementing clear controls and continuous monitoring Read the full article to discover how your firm can strengthen compliance frameworks while empowering employees to take ownership of risk every day. 🔗 https://lnkd.in/ePjrJR_g #RiskManagement #Governance #Compliance #FCA #FinancialServices #Ruleguard

Following our great risk webinar today I thought of sharing the below. I have noticed organisations I meet using new value terminology: - 'Increasing capacity' great outcome with value to help business grow. - 'Positive collaboration' developing a strong culture by enabling connected communications rather than disparate emails, leading to swift positive outcomes.

COSO is more than a compliance framework — it’s a roadmap for smarter operations. Start with your operational objectives, then align each component to support them: ✔️ Control Environment ✔️ Risk Assessment ✔️ Control Activities ✔️ Information & Communication ✔️ Monitoring A well-applied COSO Framework drives efficiency, accountability, and sustainable performance. #Tip #COSOframework #RiskManagement #Governance #Internalcontrols.

As part of their assurance and advisory roles, auditors should consider reviewing an organization's culture to establish whether behaviors, value system and tone of the organization support ethical conduct, effective risk management and good governance.

Understanding the COSO Framework — The Backbone of Internal Control In the world of internal audit, risk management, and governance, the COSO Framework stands as one of the most widely recognized models for establishing an effective system of internal control. Developed by the Committee of Sponsoring Organizations of the Treadway Commission (COSO), the framework helps organizations achieve objectives, manage risks, and strengthen governance across three key categories: 🎯 1️⃣ Operations: Effectiveness and efficiency of operations 📊 2️⃣ Reporting: Reliability and integrity of financial and non-financial reporting ⚖️ 3️⃣ Compliance: Adherence to laws, regulations, and internal policies At its core, the COSO Framework is built on five interrelated components, each supported by 17 principles: 🧩 1. Control Environment The foundation of all internal control. It reflects the organization’s culture, integrity, ethical values, governance, and commitment to competence. “Tone at the top sets the strength of control.” 🔎 2. Risk Assessment A dynamic process for identifying and analyzing risks that may hinder the achievement of objectives. It involves setting clear objectives, identifying risks, assessing their likelihood and impact, and managing change. ⚙️ 3. Control Activities These are the policies, procedures, and actions that help ensure management directives are executed. They exist at all levels and include approvals, authorizations, reconciliations, verifications, and segregation of duties. 💬 4. Information & Communication Ensures that relevant, timely, and quality information flows across the organization — both upward and downward — enabling informed decision-making. 🔁 5. Monitoring Activities Continuous or periodic evaluations of internal control performance to ensure that controls remain effective and deficiencies are addressed promptly. 💡 Takeaway: The COSO Framework is more than a compliance checklist — it’s a blueprint for embedding control consciousness into every process and decision. hashtag #InternalAudit hashtag #COSO hashtag #RiskManagement hashtag #Governance hashtag #InternalControl hashtag #Compliance hashtag #AuditProfessionals hashtag #Leadership hashtag #AuditEoperations

Understanding the COSO Framework — The Backbone of Internal Control In the world of internal audit, risk management, and governance, the COSO Framework stands as one of the most widely recognized models for establishing an effective system of internal control. Developed by the Committee of Sponsoring Organizations of the Treadway Commission (COSO), the framework helps organizations achieve objectives, manage risks, and strengthen governance across three key categories: 🎯 1️⃣ Operations: Effectiveness and efficiency of operations 📊 2️⃣ Reporting: Reliability and integrity of financial and non-financial reporting ⚖️ 3️⃣ Compliance: Adherence to laws, regulations, and internal policies At its core, the COSO Framework is built on five interrelated components, each supported by 17 principles: 🧩 1. Control Environment The foundation of all internal control. It reflects the organization’s culture, integrity, ethical values, governance, and commitment to competence. “Tone at the top sets the strength of control.” 🔎 2. Risk Assessment A dynamic process for identifying and analyzing risks that may hinder the achievement of objectives. It involves setting clear objectives, identifying risks, assessing their likelihood and impact, and managing change. ⚙️ 3. Control Activities These are the policies, procedures, and actions that help ensure management directives are executed. They exist at all levels and include approvals, authorizations, reconciliations, verifications, and segregation of duties. 💬 4. Information & Communication Ensures that relevant, timely, and quality information flows across the organization — both upward and downward — enabling informed decision-making. 🔁 5. Monitoring Activities Continuous or periodic evaluations of internal control performance to ensure that controls remain effective and deficiencies are addressed promptly. 💡 Takeaway: The COSO Framework is more than a compliance checklist — it’s a blueprint for embedding control consciousness into every process and decision. hashtag #InternalAudit hashtag #COSO hashtag #RiskManagement hashtag #Governance hashtag #InternalControl hashtag #Compliance hashtag #AuditProfessionals hashtag #Leadership hashtag #AuditEoperations

Think of GRC as your organization’s GPS: 📍 Governance – gives direction and ensures everyone follows the same map. ⚠️ Risk Management – spots the roadblocks and helps you avoid costly mistakes. ✅ Compliance – makes sure you follow all the traffic rules (laws, policies, and regulations). When all three work together — your business moves smoothly, safely, and with confidence. But that’s just the start… 👉 In Part 2, we’ll explore why GRC matters and how it builds trust, reduces risks, and drives smarter decisions. #GRC #Governance #RiskManagement #Compliance #BusinessStrategy

𝗜𝗻𝘁𝗲𝗿𝗻𝗮𝗹 𝗖𝗼𝗻𝘁𝗿𝗼𝗹 𝗧𝗵𝗿𝗼𝘂𝗴𝗵 𝘁𝗵𝗲 𝗚𝗜𝗔𝗦 𝗟𝗲𝗻𝘀 Strong internal control is not merely a compliance obligation; it forms the basis for effective governance, risk management, and assurance. At GOARISC & Oversight, we view internal control as a shared responsibility among 𝗠𝗮𝗻𝗮𝗴𝗲𝗺𝗲𝗻𝘁, 𝗕𝗼𝗮𝗿𝗱, and 𝗢𝘁𝗵𝗲𝗿 𝗣𝗮𝗿𝘁𝗶𝗲𝘀, working together to: ✅ Manage risks that could impact objectives ✅ Increase the likelihood of achieving strategic, operational, reporting, and compliance goals ✅ Support reliable governance and assurance processes Explore how the 𝗚𝗹𝗼𝗯𝗮𝗹 𝗜𝗻𝘁𝗲𝗿𝗻𝗮𝗹 𝗔𝘂𝗱𝗶𝘁 𝗦𝘁𝗮𝗻𝗱𝗮𝗿𝗱𝘀 (𝗚𝗜𝗔𝗦) shape this perspective and drive organisational success. OverSight Consulting & Training Prog. Alaba Awolaja, CIA®, CCFI Queen Monsurat Kehinde Ajayi Vuyo Gwayi #InternalAudit #GIAS #Governance #Risk #RiskManagement #Control #Assurance #GRC #GIARC #GOARISC