Dreambox Creations is an Internet services firm that designs web sites, develops

ID: 2540158 • Letter: D

Question

Dreambox Creations is an Internet services firm that designs web sites, develops content management systems and recommends online marketing strategies; Dreambox has used the COSO enterprise risk management framework to develop its own ERM plan. For each statement below, identify the element of the COSO framework that most clearly applies. You must use each element of the framework exactly one time.

1. Dreambox assigned one of its three corporate officers the responsibility for annually reviewing the plan.

2. Dreambox chose "reducing" and "sharing" as discussed in the COSO framework.

3. Dreambox developed a plan to hire additional marketing professionals whose main job would be to pursue new clients.

4. Dreambox had set a strategic goal of acquiring at least three new clients every year.

5. Dreambox planned several meetings with its staff to explain the importance of ERM, the development of the ERM plan and its implications for the firm.

6. Dreambox's management had committed to developing an ERM plan.

7. If Dreambox lacked the staff with the skills and desire to pursue new clients, they might not be able to achieve their strategic goal.

8. The potential impact of that risk was great. At an inherent level, it was also high.

Monitoring

Risk response

Control activities

Objective setting

Information and communication

Internal environment

Event identification

Risk assesment