In every industry sector, companies are striving to overcome organisational hurdles to enhance their efficiency and productivity. Within the risk management space, bridging the silos is crucial, given the rapid spread of risk events and the necessity for effective communication to promptly address and mitigate losses. The integration of enterprise risk management, insurance, and business continuity management proves instrumental in making companies more resilient, as evidenced by the successful case studies outlined in this article.
THE CHALLENGE WITH A SILOED APPROACH TO RISK MANAGEMENT
Siloed risk management practices originate from the traditional organisational structure where each department operates independently, focusing on its specific objectives without considering the broader organisational goals. Despite the evolution of management practices, siloed risk management persists in mature organisations due to established departmental cultures, lack of cross-functional communication, and resistance to change.
Furthermore, different industries have unique risk methodologies that have often been developed for different purposes. For instance, the financial sector may focus on credit and market risks, while manufacturing might prioritise operational and supply chain risks. However, some companies like Swiss Steel Group and Katoen Natie have successfully
