As a result of high-profile corporate scandals and subsequent regulatory legislation, reporting of internal controls became a requirement. These requirements have led organizations to view risk management as an area of ​​vital importance. Best practice organizations have for years looked to the Committee of Sponsoring Organizations of the Treadway (COSO) Integrated Internal Controls Framework as a standard for building a strong system of internal controls (Managing Risk, 2003). Established in 1985, COSO is a voluntary, independent private sector organization that sponsored the National Financial Reporting Commission. The National Commission was comprised of various industry representatives who studied the underlying causes that lead to fraudulent financial reporting. The committee developed recommendations for public companies, independent auditors, regulators and educational organizations that aim to improve "the quality of financial reporting through business ethics, controls effective internal practices and corporate governance” (COSO, nd, 1). Recognizing the need for organizations to evaluate their risk management efforts, COSCO has developed an Enterprise Risk Management (ERM) framework that specialists at Morrison Management and other companies can use to establish internal controls solid. Enterprise Risk ManagementERM is a controlled approach to help management identify and manage uncertainties and achieve certain risk objectives. The COSO ERM framework focuses on developing a strategy that includes the importance of “awareness” of risk and internal control throughout an organization. The COSO framework introduces eight key principles for ERM: “internal environment; setting objectives; identification of events; risk assessment; risk response; control activities; information and communication; and monitoring” (Managing Risk, 2003, p. 2). The COSO framework also includes four categories of objectives: these are: strategy; operations; financial reports; and compliance. COSCO intended this framework to be an effective tool for keeping stakeholders and administrators informed of organizational procedures and processes. The framework could also be used to help an organization respond to uncertainties, which will help directors measure how well their organization manages its own risks. The most crucial aspect of ERM is establishing effective internal controls with respect to organizational risks. The objective of COSO in internal controls is to establish a set of conditions within an organization to minimize the potential risk of misuse, loss, waste or fraud in financial reporting..