
48 • Managing Supply Chain Risk
COSO formally denes ERM as:
…a process, eected by an entity’s board of directors, management and
other personnel, applied in a strategy setting and across the enterprise,
designed to identify potential events that may aect the entity, and manage
risks to be within its risk appetite, to provide reasonable assurance regard-
ing the achievement of entity objectives. (COSO 2004)
ERM and related frameworks are not without detractors. Even COSO
states that its ERM framework is not a panacea and is a challenge to imple-
ment, and it invites research based on better understanding the frame-
work (Landsittel & Rittenberg ...