riskisiilo

Riskisiilo is a Finnish term that translates to "risk silo" in English. It refers to a situation within an organization where risks are managed in isolation, rather than being considered in a holistic and integrated manner. This can occur when different departments or teams within a company independently assess and mitigate their own risks, without adequate communication or coordination with other parts of the organization.

The consequences of risk silos can be significant. By not sharing information about potential risks, an organization might overlook interdependencies between different risk areas. For example, a financial risk identified in one department might be exacerbated by an operational risk in another, but if these are managed separately, the combined impact might not be fully understood or addressed. This can lead to a false sense of security, as individual risks might appear manageable, but their cumulative effect could be detrimental.

Effective risk management requires breaking down these silos. Organizations that adopt a more integrated approach often establish a central risk management function or framework. This allows for a comprehensive overview of all potential risks, facilitates the identification of interconnected risks, and enables the development of coordinated mitigation strategies. By fostering a culture of open communication and collaboration regarding risks, companies can improve their overall resilience and decision-making capabilities. The goal is to move from a fragmented view of risk to a more unified and strategic understanding.