For every organization, data is at the nucleus of its growth. Managing and analyzing this critical asset requires immense computing power to uncover insights that lead to new products. Cloud computing is the most efficient, scalable, and cost-effective platform available. With hybrid work environments and flexible work being the norm, cloud computing has become the catalyst for decision-making, risk management, growth, and digitization. This article at Corporate Compliance Insights speaks about new enterprise risk management guidelines for cloud computing.
COSO’s Report on Enterprise Risk Management
The Committee of Sponsoring Organizations of the Treadway Commission (COSO) released its latest guidance on ERM for cloud computing. Highlighting the principles of ERM, the report discusses integrating it with a strategy and performance framework and applying it to cloud computing governance. Mike Grob, Principal of Crowe LLP Advisory Services, and Victoria Cheng, Managing Director, co-authored the report that was commissioned by COSO. The report also outlines the roles and responsibilities for cloud computing implementation. In this guide, COSO ERM provides a framework to combat evolving cloud computing risks.
Insights on Enterprise Risk Management Purpose and Implementation
According to Paul Sobel, COSO Chairman, cloud computing’s adaptability, implementation, and computing speed are features that make it more valuable for business. It is important to implement the cloud with proper governance and risk mitigation procedures. The cloud can lead to unparalleled technology for business growth and achieving its strategic objectives.
Additionally, Mike Grob explains that successful ERM goes beyond internal controls to encompass governance, culture, strategy, and performance. It supports the organization’s strategy and objectives, aligns with its culture, and enhances value through cloud computing and ERM.
The COSO ERM framework facilitates the incorporation of cloud computing into an organization’s ERM function. Furthermore, it provides an overview of each component and its 20 principles for cloud computing governance. The organizations that incorporate cloud governance into their cloud computing process are better placed to manage risks and meet their business objectives.
Meanwhile, Cheng insists that creating an effective cloud governance protocol is vital in today’s multi-cloud environment. It reduces risks and enables more efficient and effective use of cloud computing and monitoring.
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