technology

Siloed Risk Management - A Riskwell Blog

Riskwell's COO, Martin Clark, explores the challenges posed by Siloed Risk Management tools.

3 mins

A risk shared...

One of the biggest problems with risk registers is that they are often siloed and managed by only one person or one small specialist team. They are created specifically for a project or a department and fit for only one purpose – delivery of one project or one service.

Even if they succeed in this task, let’s consider this from a company perspective:

·     Do the siloed risk registers demonstrate the risks to the organisation in meeting its objectives, and promises to its shareholders?

·     Do the siloed risk registers give the executive team a clear picture of risk exposure across the organisation?

·     Do the siloed risk registers enable the organisation to prioritise and budget effectively for mitigation actions?

·     Do the siloed risk registers ensure a common risk culture in the organisation?

·     Do the siloed risk registers enable risk lessons to be learnt across an organisation?

By their very nature, the answer to the above questions is ‘No’, even where there is a separate corporate register.

Today’s VUCA world (https://www.vuca-world.org/) demands a more sophisticated integrated approach to risk management with ownership and visibility of risks across all operational, project, departmental, and governance levels.

Organisations that allow risk silos increase their risk exposure. Organisations that allow risk silos are missing a great opportunity to enhance their performance:

·     Better ROI for the risk budget

·     Less blind spots

·     Improved lessons learnt and knowledge sharing

·     Enhanced agility and decision making

·     Advanced reporting to stakeholders/shareholders

·     Stronger compliance

The silos need to go but breaking down silos is difficult. It requires a transformation of people, process, tools, and culture. Traditionally, integration has focused on clearer corporate processes, and a roll-up reporting tool, but has omitted to address the educational, cultural, and collaborative changes that are also required.

Successful transformation requires a coherent story. It needs the right people in the right roles, provided with ongoing education. It needs to be delivered with good governance and tested throughout. Most of all, effective transformation requires leadership:

·     Leaders enabling and showing support for the changes required

·     Leaders providing the appropriate budget for guidance, tools, and training

·     Leaders mentoring and leading by example

·     Leaders who reward the right behaviours

Here’s something else to take away and think about: We can see how an internal siloed approach hampers an organisations performance. Now let’s add a layer; how do you think siloed risk management impacts organisations involved in joint venture partnerships?

Riskwell can help organisations and their partners to remove these siloes by introducing our clients to the Riskwell WayTM methodology, and our risk management tool, ProtectTM, both of which are designed to enhance collaboration, visibility and decision making. Our consultants can help you transform your organisations risk culture and reap the benefits of risk-based corporate decision making. For more information or a demo of ProtectTM please contact us: https://riskwell.co.uk/contact/.

Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.