Events are the Heart of the COSO ERM Framework

January 24, 2008

COSO was originally formed in 1985 to sponsor the National Commission on Fraudulent Financial Reporting, an independent private sector initiative which studied the cause-and-effects that can lead to fraudulent financial reporting. 

COSO developed enterprise risk management (ERM) recommendations for public companies and their independent auditors, and also for the SEC, other regulators, and for educational institutions.

At the heart of COSO is events and how events, both opportunity and threat-related events, in context, effect enterprise risk management.

Detecting opportunity and threats in real-time, both mentioned in COSO, is a core CEP concept; so I will be blogging on how CEP relates to COSO and ERM (and also Basel II ORM) in a future blog post.

Please stay tuned …

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BEP is BEP, CEP is CEP

January 24, 2008

Joe McKendrick, in Taking the ‘complex’ out of complex event processing, makes a case for renaming CEP, BEP.

Joe references IBM’s Sandy Carter, as I did in my post earlier today, IBM Says Business Event Processing is Not CEP.

Joe wants to change the world “complex” to “business” in CEP because he believes the word “complex” is not good for marketing.

The problem with Joe’s approach, as I see it, is that CEP is different than BEP.  However, I remain open-minded on the topic.

There is quite a difference in event-driven orchestration-oriented processing, BEP. and situation detection-oriented event processing, CEP.

BEP is, for the most part, about orchestrating event-driven business processes.

CEP is about detecting opportunities and threats (situations) in real-time.

It is not clear to me that simply renaming BEP CEP touches the core technical and business differences.


IBM Says Business Event Processing is Not CEP

January 24, 2008

Sandy Carter, IBM’s vice president of SOA and WebSphere strategies, said something in IBM Buys AptSoft To Boost BPM-SOA Line I completely agree with, relative to most of the technologies folks are calling “CEP” these days:

“In the marketplace today, everybody talks about complex event processing,” Carter said. “We actually are trying to rename that category, because we believe the real value is in business event processing, with a focus on the business.”

For example, none of the current CEP vendors are doing “complex event processing” as many of us have said, repeatedly.

TIBCO and AptSoft, for example, are examples of companies that are really implementing, business event processing. You can easily confirm this in TIBCO’s press release, TIBCO BusinessEvents 2.2 now shipping…, where Paul Vincent blogs:

The main change with this [TIBCO BusinessEvents 2.2] release is the inclusion of new deployment options:

+ deploy BusinessEvents within a BusinessWorks container: great for using BusinessEvents as a decision engine for SOA integration processes, choreography, transaction flow monitoring, etc, or for using BusinessWorks as a ruleflow tool.

+ deploy BusinessEvents as a BusinessWorks container: great for exploiting SOA orchestration and services under the control of CEP, such as invoking complex adapters.

This is absolutely, “business event processing” just as IBM’s Sandy Carter stated, correctly in my opinion, not CEP.

The same is true for event stream processing (ESP). ESP technology from companies like Apama, Coral8 and StreamBase, is much more closely aligned with the “business event processing” than anything that is truly CEP.