COSO Enterprise Risk Management (ERM) aims to help organizations understand and prioritize risks and create a strong link between risk, strategy, and how a business enhances superior value. It is our favorite approach to assess, design, build, deliver, and transform sustainable Enterprise Performance Management (EPM) Initiatives.

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Applying COSO EPM for EPM, organizations can identify and manage specific risks and establish practices to optimize EPM results, while managing exposure to risks like bias, and lack of transparency. It is part of our implementation approach, helping our clients and practitioners to transform with confidence among stakeholders across the organization, and proactively address emerging risks related to Strategic Finance and AI.

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By incorporating these COSO ERM components into your EPM implementation, you can create a comprehensive and integrated system that aligns performance management with organizational strategy, fosters a culture of accountability, enables data-driven decision-making, and supports continuous improvement. Regular review and revision cycles ensure that the EPM system remains relevant and effective in driving organizational success.

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• Governance and Culture

  • Establish a strong tone at the top by ensuring that senior management and the board of directors support and promote the EPM initiative.

  • Define clear roles, responsibilities, and accountability for EPM processes across the organization.

  • Foster a culture of performance management by communicating its importance and encouraging employee engagement.

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• Strategy and Objective-Setting

  • Align the EPM system with the organization's overall strategy and objectives.

  • Involve key stakeholders in setting measurable and achievable performance targets.

  • Ensure that performance objectives cascade down from the organizational level to individual levels.

 

• Performance:

  • Implement robust performance measurement and monitoring processes.

  • Establish key performance indicators (KPIs) that are relevant, measurable, and aligned with strategic objectives.

  • Develop data collection and analysis mechanisms to track performance against targets.

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• Review and Revision:

  • Conduct regular performance reviews at various levels of the organization.

  • Analyze performance data to identify areas for improvement and make necessary adjustments.

  • Continuously refine and update performance targets and measures to ensure their relevance and alignment with changing business conditions.

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• Information, Communication, and Reporting:

  • Establish effective communication channels to disseminate performance information throughout the organization.

  • Develop user-friendly reporting mechanisms to present performance data in a clear and actionable manner.

  • Encourage open communication and feedback loops to support continuous improvement and learning.

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