COSO ERM Framework Model for Bigboli

Submitted By:
Abhisek | Aikansh | Nupur | Sailendra | Sonali | Viren
As per the framework the four categories of objectives across the top—strategic, operations, reporting and
compliance related to Bigboli must be addressed to have a proper integrated ERM throughout. The ERM
framework must have its alignment with that of strategic goals aiming at a long-term perspective as the
short-term goal must be going digitized but the long-term goal is sustaining in the business domain. As
they have planned to go for new portfolio’s like house keeping, security, transportation, healthcare areas
so there needs to be efficient integration among the old portfolios, new planned portfolio’s and other
business processes. The ERM has to ensure accommodation of expectations for governance and oversight
for Bigboli, its suppliers and vendors.
With the growth of other ecommerce websites like Amazon, flipkart there is a need to recognize the
continued globalization of markets and operations and this leads towards a need to apply a common
approach across geographies and their strategies. The framework must ensure fresh ways to view risk in
the context of greater business complexity, which would arise due to the new features like dynamic pricing
by supplier, and calling tenders online or running reverse auctions. Hence this expands risk reporting to
address expectations and with a proper ERM framework greater stakeholder transparency can be
maintained.

The components of the framework wrt Bigboli can be described as follows:

 Internal Environment
Risk Management Philosophy- To build a friendly interactive digital platform keeping the value and
standard practices as it was
Risk Appetite- Customer retention over supplier retention
Board of Directors' Attitude- More power with the independent directors
Integrity and Ethical Values- Quality and timely deliverables
Commitment to Competence- Proper training and development for all stakeholders
Organizational Structure- Regular reporting and surveillance
Assignments of Authority and Responsibility- Category and Sub-Category officers
Human Resource Standards- Proper communication and effective employee engagement
 Objective Setting
Strategically a smooth transition of platform
Supply chain to be trained of the digital platform usage
Monitoring and record maintenance periodically
Adhering to the strict compliance system for the stakeholders
 Event Identification
External Economic Events- Digital India Movement, Demonetization, GST Implications
Internal Infrastructure Events- Investments in digitization (servers, website)
Internal Process Related Events- Supplier and customer account management (order placement to
delivery)
External and Internal Technological Events- Periodical up gradation and maintenance by Sukensy
Consultancy
 Risk Assessment
Inherent Risks- Measuring the Impact and Likelihood of failure of digital platform transition. Both online
and offline database to be maintained in parallel
Residual Risks- Periodically maintaining and tracking records of the issues raised
 Risk Response
Reduction- Offering varieties, compare option, 3D videos
Sharing- Sukensy Consultancy, Supplier Insurance, Hedging operations
Acceptance- Competitors use of advanced technology, wide customer base and brand awareness
 Control Activities
Top level reviews by Category and Sub-Category officers
Ownership of the online platform risk is on Sukensy Consultancy
Environment, Security, Internal Compliance Workshops and Tests
Inventory Management
Financial and Operational reporting tools, their training and workshops for employees
 Information and Communication
Common Interface- Enterprise Resource Planning
Newsletters, notification popups about the ongoing and solved issues
Awards and Recognition
 Monitoring
Review of risk and control materials by Category and Sub-Category Officers
Use of flowcharts and facilitated sessions for easy risk identification
Questionnaire for customers and suppliers for improvements