What does Silo Factor mean? Read on to discover the definition & meaning of the term Silo Factor - to help you better understand the language used in insurance policies.
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.
We hope the you have a better understanding of the meaning of Silo Factor.