What does the "Review and Revision" component of COSO focus on?

The "Review and Revision" component of the COSO framework emphasizes the importance of assessing and enhancing the effectiveness of an organization’s risk management process over time. This involves evaluating the performance of risk management strategies and controls to ensure they are functioning as intended and adapting to changes within the organization or its environment. By concentrating on a company’s performance over time, organizations can identify areas for improvement, make necessary adjustments, and continually align their risk management approaches with their objectives and changing circumstances.

While creating a detailed budget analysis, establishing a risk communication strategy, and outlining objectives for risk avoidance are important aspects of an organization's risk management practices, they do not specifically capture the focus of the "Review and Revision" component. This component is more about ongoing evaluation and making iterative improvements rather than simply establishing strategies or objectives.