A Risky Proposition: Setting Objectives and Assessing Business Environment Risks Using the Enterprise Risk Management Framework

In the first part of this case, students are introduced to the five components of the 2017 COSO enterprise risk management (ERM) Framework and will use this framework to recommend objectives related to a small coffee shop’s strategic position and identify the associated risks. In the second part of the case, students will use Social, Technological, Economic, Environmental, Political, Legal, and Ethical (STEEPLE) Analysis to identify business environment risks and assess these risks regarding a new business opportunity. At the conclusion of the case, students should be able to recommend risk-conscious business objectives and performance targets that align with a business’s strategy as well as assess the risk associated with a new business opportunity. The topics addressed in this teaching case are appropriate for undergraduate and graduate-level managerial accounting, Accounting Information Systems (AIS), and Auditing courses where business environment risks are discussed and evaluated. Data Availability: Data are available upon request. JEL Classifications: M140; M410.