Committee of Sponsoring Organizations of the Treadway Commission

The Committee of Sponsoring Organizations of the Treadway Commission develops standards for risk management and internal control in companies.

What´s all about:

  • What standards does COSO develop?
  • In what way does METRO use the COSO standards?

The abbreviation COSO stands for the Committee of Sponsoring Organizations of the Treadway Commission. It is a private organisation founded in 1985 and is based in the USA. The goal of COSO  is to support companies with their internal controls, risk management and governance

COSO standards

In 1992, COSO first published a regulatory framework for internal controls, which is recognised today as a standard by the Exchange Supervisory Authority, and revised it several times in subsequent years:

  • 1992: COSO Internal Control – Integrated Framework. This standard established the basis for internal controls in companies.
  • 2004: COSO Enterprise Risk Management – Integrated Framework. This standard places the focus on risk management and how it can be integrated into the corporate strategy.
  • 2017: COSO ERM Framework – Integrating with Strategy and Performance. This standard updates and expands the previous version from 2004.

Risk management and internal control system

For METRO, the standards of the COSO organisation form an important basis for the risk management system (RMS) and the internal control system (IKS [ICS]). This system plays a central role in the early identification of risks and adherence to compliance regulations. As a result, the RMS and IKS/ICE help protect METRO’s assets and support sustainable growth.

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How does METRO help its customers become more successful? The company’s goals can be found here: 👉 METRO AG Strategy