Effective Implementation of The COSO Framework in The Banking Sector
February 15, 2023 @ 8:00 am - February 16, 2023 @ 4:00 pm
The Committee of Sponsoring Organizations (COSO) is a joint initiative of five private sector organizations dedicated to providing thought leadership through the development of frameworks and guidance on enterprise risk management, internal control, and fraud deterrence.
The COSO framework is a widely recognized framework for internal control and for evaluating the effectiveness of an organization’s internal controls. It provides a common language and a systematic approach for evaluating and improving the design and operation of an organization’s internal controls.
Central banks in various countries have emphasized the importance of internal control in banks through legislation and regulations. This is beneficial for all bank employees, including board members and executive managers, as it helps them understand their responsibilities and effectively implement and assess internal controls using COSO’s framework, and report to external users.
Banks and financial institutions can greatly benefit from using the COSO framework in their internal audit processes. The banking industry is heavily regulated, and it is essential for banks to have robust internal controls in place to ensure compliance with laws and regulations, protect against financial fraud, and safeguard the assets of the bank and its customers. By using the COSO framework to evaluate the effectiveness of their internal controls, banks can identify any weaknesses or gaps in their control system and take appropriate corrective action. This can help to reduce the risk of non-compliance and financial losses, as well as enhance the overall efficiency and effectiveness of the bank’s operations.
The workshop aims to provide insight into effectively implementing the internal control framework (COSO) using the self-assessment method for internal control systems and internal audit based on risks. It also aims to define the responsibilities of administrative levels and organizational units towards the control system.