In this lesson, Nick Palazzolo, CPA, breaks down the components of the Enterprise Risk Management (ERM) Framework, connecting them to the integrated framework for internal controls discussed previously. He explains that understanding and memorizing these components can earn "free points," emphasizing the similarities between the ERM framework and the control environment component of internal controls. Throughout the lesson, Nick motivates the commitment to deep memorization, going through terms like governance and culture, operating structure, and strategy and objective setting. He presents the process involved in risk appetite definition and illustrates how a company's approach to risk is integral to its operation, touching on the importance of monitoring for improvement opportunities in ERM. Finally, Nick correlates the elements of the ERM to those in the internal controls framework to streamline the memorization process.
Lesson: Components of the ERM Framework
In this lesson, Nick Palazzolo, CPA, breaks down the components of the Enterprise Risk Management (ERM) Framework, connecting them to the integrated framework for internal controls discussed previously. He explains that understanding and memorizing these components can earn "free points," emphasizing the similarities between the ERM framework and the control environment component of internal controls. Throughout the lesson, Nick motivates the commitment to deep memorization, going through terms like governance and culture, operating structure, and strategy and objective setting. He presents the process involved in risk appetite definition and illustrates how a company's approach to risk is integral to its operation, touching on the importance of monitoring for improvement opportunities in ERM. Finally, Nick correlates the elements of the ERM to those in the internal controls framework to streamline the memorization process.
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