Val
The key requirement in a risk definition is a metric. For example
the Securities & Exchange Commission has selected the metric of assets, as
in safeguarding shareholder assets, to measure risk. The International Standards
Organization has selected the metric of equity as European accounting has been
based on principals, not on rules like U S accounting. A few Big four accounting
firms promote the metric of objectives within the COSO framework. COSO
objectives are required in Reporting, Operations and Compliance. The issue with
objectives, as a metric, is that it is subjective and is often in “the Eye of
the Beholder”
If we look at how these metrics may be combined we see that a public company’s objectives should be shareholder equity protection and growth. Equity then is the ownership of assets. The change in asset values becomes shareholder equity loss or growth. Using assets as the metric then integrates all the other metrics.
-----Original Message-----
From: [EMAIL PROTECTED] [mailto:[EMAIL PROTECTED] On Behalf Of Moutsopoulos, Val
Sent: Wednesday, March 12, 2003 2:39 PM
To: [EMAIL PROTECTED]
Subject: Looking for a definitionAll,
Does anyone have a good definition for system risk?
Thanks
Val Moutsopoulos
Investors Bank & Trust
IT Audit Manager
( Voice: (617) 937 - 3268
( Cell: (617) 901 - 3513
* e-mail: [EMAIL PROTECTED]
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