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COSO Unveils Practical ERM Guidance for Organizations

On May 4, 2026, the Committee of Sponsoring Organizations of the Treadway Commission (COSO) introduced its latest publication titled From Guidance to Action: Exploring Practical Enterprise Risk Management. This comprehensive paper aims to assist organizations in enhancing the strategic relevance and real-world impact of their Enterprise Risk Management (ERM) programs.

Written by a team from Crowe LLP, including Ryan Luttenton, Stefany Samp, and Alexa Stone, the report stems from a global survey directed at risk leaders and in-depth discussions with senior executives from various industries. It provides insights into the current experiences of ERM, identifying where it delivers actual value versus where it becomes overly abstract or compliance-focused. The paper reveals essential characteristics that differentiate effective risk programs from those that merely exist as formalities without impacting strategy or decision-making.

According to Lucia Wind, Executive Director and Chair of COSO, organizations are currently grappling with unprecedented levels of complexity and uncertainty. She emphasized that the evolution of ERM is crucial to align with these changes. This new guidance offers experience-based strategies that encourage leaders to pivot from mere documentation to dynamic, real-time decision-making practices designed to enhance organizational performance, resilience, and governance.

The findings expose a significant gap in implementation; while many ERM programs manage to mature and compile extensive documentation, their influence on actual decision-making remains lackluster. Notably, over half of those surveyed indicated that their ERM initiatives are perceived primarily as compliance-centric or assurance functions. Alarmingly, only 7% of respondents said that ERM is seamlessly integrated into their strategic decisions. Interestingly, however, a staggering 98% of participants asserted that ERM should play a more pivotal role in facilitating prompt decision-making through clarifying trade-offs, responsibilities, and risks.

To bridge the identified gaps, From Guidance to Action outlines practical steps for organizations to implement the COSO ERM Framework effectively. This toolkit aims to embed risk consideration into routine decision-making. The paper features real-world case studies highlighting effective ERM in practice, alongside a model that connects risk to strategy during critical decision moments. Furthermore, it presents operating disciplines to ensure that teams can provide timely, decision-ready insights even amid real constraints.

Ryan Luttenton of Crowe encapsulated the guidance's essence by asserting that while risk management programs do not need to be flawless, they must be effective. Organizations are encouraged to build sustainable programs focused on delivering clear, actionable insights. Simplicity, intention, and innovation are central to achieving this aim; complexity is an option that should be avoided. When executed effectively, risk management not only protects but also facilitates the pursuit of organizational value.

The resource, From Guidance to Action: Exploring Practical Enterprise Risk Management, is now available from COSO and aims to inspire novel approaches and enhance the practice of risk management across sectors. As organizations navigate an increasingly volatile landscape, the timely implementation of effective ERM could significantly influence their long-term success and adaptability.