I’ve recently listened to a podcast from Steve McKinney regarding innovative breakthroughs and what habits and processes successful companies utilize to spur innovation and drive success. One of the processes Steve mentions is the breaking down of silos within a company. He is correct in pointing out that successful companies make it a habit of breaking down silos and reaching across departments. However, not only is this necessary to spur innovation within an organization but it is necessary if a company wishes to proactively manage and mitigate corporate and legal risk.
In order for risk management processes to be successfully implemented within a company, internal communications across the organization must be properly utilized. How a risk management plan is communicated and implemented to internal stakeholders is not only important but vital, especially during a crisis or a potential crisis. This requires the breaking down of silos or in other words effective and efficient communication between organizations and departments within a company or corporation. To be proactive a company needs to communicate risk management strategies across corporate divisions which necessitates the breaking down of silos within the organization. In essence, communication is everything. Risk management and mitigation processes not only should be championed in the company but should be shared throughout the company. Siloed divisions fail to adequately communicate information to other divisions or departments inside the company but also fail to communicate ideas, best-practices and important processes too. Communication, internal and external is key.
During a crisis, a company must communicate effectively with regulators and outside stakeholders to manage it before the crisis blows up, but the company must communicate with internal stakeholders within the corporation as well. In order for an organization to do this successfully it must improve and encourage internal communications. It needs to increase communications between departments to proactively handle risk management issues, quality control issues, legal risk issues as well as compliance related matters. Innovative companies have implemented successful strategies on managing risk including improved internal communications within the organization as well as the various divisions and departments which requires the breaking down of silos within the company. How can a company manage risk when silos within a company prevent or prohibit communication? Silos must be broken down to facilitate internal communication and proper implementation of corporate risk management processes and procedures. To manage risk-break down silos.
Questions to ask yourself:
