Too often, companies are siloed in their approach to assessing risk in foreign jurisdictions. FTI Consulting’s Ken Jones and Lindi Jarvis explore what companies should keep in mind when developing and refining their overarching risk assessment methodologies.
For many companies, breaking down the organizational barriers that impede seamless interactions and operations is a clear priority. However, this is easier said than done, which is why many organizations have not figured out how to effectively collapse these walls.
In risk management, silos prevent management from having a view into all the risks impacting a business at any given time. Far too often, companies are siloed in both their organizational structure and their approach to assessing risk, especially in foreign jurisdictions, resulting in management being unsure about the true risks and if they are funding the right programs. This leads to confusion regarding how to prioritize certain risks, which is inefficient and costly.
For example, a pharmaceutical company may have research and development operations in six countries, processing facilities in nine countries and sales and distribution in another 20. Similarly, financial services firms may have some combination of retail banking, broker-dealer and asset management in various countries….
