From the course: Advanced SOC 2 Auditing: Proven Strategies for Auditing the Security, Availability and Confidentiality TSCs

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Exploring CC3.2 - COSO Principle 7: Identifying and analyzing risks for effective objective achievement and risk management

Exploring CC3.2 - COSO Principle 7: Identifying and analyzing risks for effective objective achievement and risk management

From the course: Advanced SOC 2 Auditing: Proven Strategies for Auditing the Security, Availability and Confidentiality TSCs

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Exploring CC3.2 - COSO Principle 7: Identifying and analyzing risks for effective objective achievement and risk management

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- [Instructor] Welcome to the exploration of CC3.2. Today we'll dive into COSO Principle 7, highlighting the significance of identifying and analyzing risk to ensure the effective achievement of objectives. COSO Principle 7 underscores the need for organizations to identify risk throughout the organization and scrutinize these risks, determining the best strategy for their management. A few points of focus in the COSO framework. Entity-wide scope. It emphasizes that risk identification across various levels, the entity, subsidiary, division, operating unit, and functional levels are super important. Internal and external factors. Organizations are encouraged to consider both internal dynamics and external environments and their impact on objectives. Management engagement. Effective risk assessment mechanisms must involve the appropriate levels of management. Risk response. Deliberation on whether to accept, avoid, reduce, or share identified risk. Some additional emphasis on the trust…

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