COSO - ERM - Integrating with Strategy and Performance - Executive Summary

COSO’s Enterprise Risk Management—Integrating with Strategy and Performance (2017) reframes ERM as a value-driving discipline rather than a compliance exercise.

The Executive Summary stresses that risk should be considered during strategy selection, not after a strategy is chosen.

This shift helps leaders evaluate whether a strategy aligns with the organization’s mission, vision, and core values, and understand the implications created by strategic trade-offs.

The framework also links risk to performance by defining risk appetite, prioritizing risks by severity, selecting responses, and taking a portfolio view of risk.

Its five components—governance and culture; strategy and objective-setting; performance; review and revision; and information, communication, and reporting—support stronger oversight, clearer reporting, and greater resilience in a volatile environment.

Overall, the update positions ERM as an integrated management capability that improves decision quality, transparency, and long-term performance.

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