Corporate Compliance Plan Paper - Essay Example

These risks include financial malpractice, product liability amongst others. This is the reason why this company needs a control plan to ensure that it has sound business objectives and can manage its risks effectively and in accordance with the laws. This document is going to describe the control plan of Riordan Manufacturing Company. The control plan is in line with the principles that were identified by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). The control components that Riordan will use are also included in this control plan and are in accordance with the ones identified by the above commission.

A company of Riordan’s status is bound to experience enterprise risks of varying magnitude, and that is the reason that the enterprise risk management plan of this company will be provided. It is important to identify the roles that will be played by various personnel in the company as far as the implementation of this control plan is concerned. These responsibilities will be identified. The limitations and weaknesses of enterprise risk management will also be included in the paper. A control plan has to take into consideration the enterprise risk management that is particular to that company.

These are the methods and processes that are employed by any organization in order to deal with risks that are detrimental to the achievement of the company’s objectives and goals (Committee of Sponsoring Organizations of the Treadway Commission [COSO], 2004). Not only does the company use these methods to manage the risks particular to it, but it also uses it to take advantage of opportunities that avail themselves to it. This is because every risk has the potential of hindering the achievement of a particular goal or presenting an opportunity to the company.

The process of risk management is adopted by the directors of the company. It is used by