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ABC Corporation has adopted the COSO Enterprise Risk Management (ERM) framework to improve worker safety. In applying the framework, ABC has performed various actions, which
ABC Corporation has adopted the COSO Enterprise Risk Management (ERM) framework to improve worker safety. In applying the framework, ABC has performed various actions, which are listed below in random order. Select from the option list provided to indicate the correct principle corresponding to each action based on the COSO ERM framework.
Actions | ERM Principles |
1. Senior management periodically reviews the daily safety log completed by the risk managers. | |
2. The risk committee determined that workers potentially may ignore safety requirements. | |
3. The CEO emphasized at the annual meeting that ABC Corporation will strive for a risk-averse culture with worker safety as a top priority. | |
4. Senior management set a goal to improve workplace safety and reduce work injuries by 50%. | |
5. Risk managers at a construction site observe whether all workers wear safety equipment. Those who do not are ordered to stop working until they comply with safety requirements. | |
6. The risk committee determined that workers who do not wear safety equipment are 50% more likely to be injured, resulting in insurance premium increases of approximately $2,500,000. | |
7. Risk managers record results of observations in the daily safety log. A risk management team includes these data in a report requesting additional resources for safety programs. |
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