The Committee of Sponsoring Organizations of the Treadway Commission COSO) has confirmed plans to issue guidance for use of blockchain technology early next year, the Wall Street Journal reports. The guidance will reportedly target leaders in the financial services industry and other sectors and companies where blockchain technology is being utilized.
According to the Journal, the guidance will be designed to help companies using the technology improve oversight of their blockchain projects. COSO chairperson Paul Sobel told WSJ:
“I want to make sure that we’ve got that properly controlled because it is a very different view of the world when you have distributed ledgers. It isn’t something that is contained in your own system.”
COSO is a joint initiative comprising the American Accounting Association, the American Institute of Certified Public Accountants, Financial Executives International, The Association of Accountants and Financial Professionals in Business, and the Institute of Internal Auditors. The initiative is committed to providing “thought leadership through the development of frameworks and guidance on enterprise risk management, internal control and fraud deterrence.”
COSO’s advisories and framework recommendations are offered as voluntary guidance, but can often provide companies and industries with greater insights into risk management standards at the enterprise level.