In times of incredible change in how we work, where we work and how we communicate and collaborate, risk management has become even more important. If you do not have an effective integrated risk management platform that makes the organization more agile and improves transparency, you may find yourself at the back of the pack.
What is siloed risk management?
Siloed Risk Management is when risks are managed separately by individuals or individual departments instead of managing those risks in an integrated way. This siloed risk management approach means that different teams can’t, or won’t, share valuable information with other teams or departments within the organization, thus creating an environment of poor collaboration and no integrated focus across the business. This can lead to duplication of efforts, workflow overlap and prevents effective collaboration creating the inability to identify common risks across the organization. The siloed approach makes it incredibly difficult to identify and understand risks and how they may affect the organization as a whole. This may end up costing the organization more, create a misallocation of resources and overlaps of workflow that will affect the bottom line and hinder growth.
Operational risks are interconnected and need to be understood by every part of the organization or it can have a detrimental cascading effect. Siloed risk management does not do a good job of this.
Although the siloed approach has been the norm in the past, the organizations of today need to operate more effectively, eliminating redundancy and confusion which can potentially expose the organization to greater risk in a distributed business environment.
What is Integrated Risk Management?
Integrated risk management (IRM) is a set of practices and processes supported by a risk-aware culture and enabling technologies, that improves decision making and performance through an integrated view of how well an organization manages its unique set of risks. It represents company-wide visibility into governance processes through automation and technology integration.
Integrated Risk management (IRM) implements an integrated view and management of operational risks. It is a common framework which is across the entire organization to bring all departments and teams together to avoid departmentalized risk management silos. IRM increases visibility of emerging risks and their possible impact on the entire organization. It makes it easy to spot workflow overlaps in order to facilitate common processes. In an automated IRM environment this is done in an instant with comprehensive reporting, analytics and collaboration, all in one software platform.
Alcea’s RiskMgr is an integrated IRM software platform used to implement strategic decision making and better facilitate effective risk management and mitigation while helping organizations avoid or replace the outdated siloed approach.