COSO ERM Guidance 2026: A Step Forward for Decision-Led Risk Management

The new COSO ERM Guidance 2026 marks a significant improvement, emphasizing a decision-led approach over documentation-heavy processes. Internal audit and assurance professionals should note its focus on integrating risk analysis with strategic choices and value creation, moving away from abstract risk appetite concepts and compliance-driven ERM. This guidance encourages a more actionable and embedded risk management function, challenging traditional methodologies like heat maps and standalone risk reporting.