Xianbo Zhao
Traditionally, risk management is segmented and conducted in
separate business units or departments (i.e. silos) within a company.
Under silo-based risk management, silos deal with their own risks, and
none single group or person in the company has a grasp of the entire
exposure that the company faces. This is attributed to the way people
think about solving problems, the existing organizational structure,
and the evolution of risk management practice. In addition, this is due
to the fact that each silo within a company possesses the best expertise
to address the risks within its area of responsibility.
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