Proactive Risk Management Guidelines Based on the COSO ERM 2017 Framework: Internal Control Strategies for Accountants in Response to Technological Transformation

Abstract

This article academic presents a proactive risk management approach based on the COSO ERM 2017 framework, serving as a vital strategy for enhancing internal controls for accountants amidst rapid and disruptive digital transformation. Specifically, technologies such as Artificial Intelligence (AI), Big Data analytics, and Cloud computing significantly impact the reliability of financial reporting and audit efficiency. The COSO ERM 2017 framework emphasizes the integration of risk management into strategy-setting and organizational operations throughout the entire system. This facilitates a transition from reactive controls to risk forecasting through five core components, beginning with the foundation of a digital culture and the establishment of objectives aligned with risk appetite. Furthermore, the application of modern technology for dynamic risk sensing enables instantaneous impact assessment and anomaly detection. The literature synthesis in this article reflects that key success factors include digital professional intelligence, top management support, and high-quality information communication. This proactive approach not only mitigates the impacts of cyber threats and technological crimes but also empowers accountants to elevate their roles to strategic partners, capable of sustainably creating and preserving organizational value in a volatile business environment.