The Efficiency of the Functioning of Enterprises Based on the Principles of SEE-management: An Updated Look at the Conception of COSO, SEE-risks

The aim of the article is to reveal the main aspects of risk management methodology based on the COSO conception as a means of enhancing the efficiency of the operational processes of enterprises that represent complex dynamic stochastic systems, based on the models of Burennikova (Polishchuk) – Yarmolenko and the indicators of their performance components on the basis of SEE management using SEE analysis. The modern conception of COSO ERM is outlined, which considers the internal environment of the enterprise as the foundation for control implementation that defines the management philosophy. It is emphasized that the integrated conception of COSO ERM defines the main objectives, the achievement of which will ensure the effective functioning of enterprises, which is impossible without a clearly formulated mission, functions, and tasks of such functioning and without taking into account the internal risks, in particular SEE risks. The management of SEE risks represents a decision-making process and the implementation of measures aimed at reducing the impacts of the consequences of these risks on the functioning of enterprises. These measures may include certain SEE actions in the process of SEE management. The aforementioned functioning may be facilitated by the application of an updated management paradigm based on the COSO ERM conception, utilizing SEE management as a means to enhance the efficiency of the operational processes of enterprises, which are complex systems, based on the authors’ components of management efficiency considering SEE risks. The SEE risk of the functional processes of complex systems is proposed to be regarded as the probabilistic failure to achieve desired levels of scale, efficiency, and effectiveness compared to expected levels, leading to errors and/or inaccuracies in SEE management. An algorithm for the formation and implementation of a strategy based on the COSO ERM model for managing the activities of industrial enterprises grounded in SEE management, taking into account SEE risks, is presented.