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Silo Factor

Silo Factor


Silo Factor — refers to the fact that the management of an organization's risk typically is assigned to risk managers within departments. For example, the finance department monitors credit risk, public relations oversees reputation risk, facilities management supervises physical risk, information technology focuses on data security risk, and so on. Compartmentalizing risk managers in these silos results in a narrow, parochial view of risk and prevents top management from understanding risks facing the entire enterprise.

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