Unintended Selfishness – How It Affects the Big Picture

We’ve all experienced some sort of communication breakdown in a professional environment; the sales department fails to communicate an upcoming project or event with the marketing department, or the business development team implements a campaign without fully explaining it to the project managers…there are so many scenarios in which lack of communication can greatly affect the positive ebb and flow of a business.  This breakdown usually does not occur on purpose, but often professionals find themselves falling into their own little departmental worlds, without realizing how their mindset affects the rest of their coworkers and their duties.

The most common problem when it comes to assessing operational risk management is this type of unintended selfishness – a simple lack of communication because everyone is focused on their own projects and their own departmental needs, without giving quality thought to the big picture.  Overall, this is common because it can be an overwhelming task to consider how each daily task or decision affects multiple other departments, and in what ways.  Because of this, operational risk can completely destroy even the most foundationally-sound companies from the inside out.

Asset intensive, high risk, heavily regulated industries are undergoing major changes and face an environment marked by growing consolidation, rising customer expectations, increasing regulatory requirements, rising technological innovation and mounting competition.  This has increased the probability of failure or mistakes from the operations point of view, resulting in increased focus on managing operational risks.

The solution?

An operational risk management platform that has a toolbox of functions that identify and solve issues related to loss data collection, risk and controls self-assessments, scenario analysis activities, key risk indicators and reporting, plus a system for constant communication between employees, departments, and branches. 360factors provides a regulatory risk and compliance management software platform, Predict360, and advisory services for functions and regulations such as risk management, Process Safety Management, Asset Integrity, Operational Risk and Quality Management through an effective regulatory risk and change management model and methodology.

“Risk management is preventative in nature, but reward structures are not aligned to reward prevention. Rather, systems are aligned to reward the resolution of a crisis, and quite frankly our human brains are wired to prefer this focus.” – John J. Brown, Director of Risk Management, Coca-Cola

Is your business foundation ready to handle a major operational risk incident without a properly implemented risk management program?  Best not to find out.

 

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