Breaking Down the Silos

Last week, Wheelhouse Advisors participated in a webinar hosted by OpenPages that examined some of the root causes of the current economic crisis associated with operational risk management, and how operational risk management can be leveraged for strategic advantage moving forward.  John Wheeler, Managing Principal at Wheelhouse Advisors, described how operational risk management is the one discipline that binds all the other risk disciplines together in a truly successful enterprise risk management ("ERM") program.  Mr. Wheeler discussed the following strategies for risk professionals to improve their operational risk management program and, in turn, increase the overall effectiveness of the ERM program.

•Simplify & Streamline

1. Eliminating redundant activities


2. Adopting common methods / terminology


3. Coordinate efforts across functional silos

•Develop an Active & Consistent Dialogue

1. Frame conversations in relevant terms (e.g. discuss underwriting and documentation improvements as it relates to improvements in credit quality)


2. Meet on “their turf” to develop greater understanding and buy-in

•Measure & Monitor

1. Agree on a few key risk indicators


2. Monitor relentlessly

The webinar provided much more information about how to use operational risk management practices and supporting technologies to manage risk in a cost-effective manner that will translate into a major competitive advantage.  To learn more about how Wheelhouse Advisors can help your company, visit www.WheelhouseAdvisors.com.