COSO developed Figure 7-1 to illustrate the elements of ERM. The four columns at the top
Represent the objectives management must meet to achieve company goals. The columns on the right represent the company’s units. The horizontal rows are the eight interrelated risk and control components of ERM. The ERM model is three-dimensional. Each of the eight risk and control elements applies to each of the four objectives and to the company and or one of its subunits. For example, XYZ Company could look at the control activities for the operations objectives in its Pacific Division.