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New Approach to Risk Management Applied Across Industries

New Approach to Risk Management Applied Across Industries

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New Approach to Risk Management Applied Across Industries

by Daisy D.
06/03/2024
in Compliance, Risk Management

A conceptual framework known as the Swiss cheese model, traditionally utilized in medical contexts, is gaining traction as a versatile tool for risk management across various sectors.

The Swiss cheese model illustrates how accidents can occur when multiple barriers, represented by slices of cheese with random holes, fail to prevent hazards from progressing. In this model, each hole represents a gap or flaw in the defensive system. For an accident to happen, these gaps must align, allowing risks to penetrate through multiple layers of defense.

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The application of this model extends beyond medical scenarios to business contexts, particularly in the proactive management of new ventures. In the business realm, organizations seek to align the “holes” in the cheese to facilitate the success of new initiatives. This involves breaking down silos between departments and aligning expertise to identify and address potential barriers to success.

For instance, during the conceptualization phase of a new product or strategy, departments such as research and development, sales and marketing, finance, production, and human resources collaborate to assess various aspects of feasibility, marketability, profitability, and implementation. By aligning their efforts, they aim to minimize barriers and increase the likelihood of success.

Moreover, the Swiss cheese model can be applied beyond business, such as in sports, where teams face challenges that require multidimensional solutions. By identifying and addressing barriers collectively, teams can enhance their performance and overcome obstacles more effectively.

In conclusion, the Swiss cheese model offers a systematic approach to risk management, emphasizing collaboration and alignment across various disciplines. While success is never guaranteed, this approach enhances the likelihood of navigating through potential obstacles to achieve desired outcomes.

Discover the latest in supply chain logistics news on The Supply Chain Report. Free international trade tools are available at ADAMftd.com.

#RiskManagementEvolution #IndustryRiskApproach #CollaborativeRiskMitigation #GlobalRiskStrategy#SupplyChainNews

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  • Home
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    • Importing & Exporting
    • Manufacturing
    • Warehousing & Distribution
  • Compliance
    • Supply Chain Transparency
    • Anti-Money Laundering (AML)
    • Know Your Customer (KYC)
    • Risk Management
    • Export Controls
    • Sanctions
  • Global Trade
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    • Sourcing
    • Trade Policies
    • International Relations
    • Trade Agreements
    • Tariffs & Duties
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  • Luxury Goods
  • Industry
    • Blockchain in Supply Chain
    • Importing & Exporting
    • Automation & Robotics
    • Artificial Intelligence in Trade
    • Data & Analytics
  • Sustainability & Ethics
    • Green Supply Chains
    • Sustainable Logistics
    • Ethical Sourcing
    • Corporate Social Responsibility
    • Environmental Policies
  • Security & Risk
    • Cybersecurity in Trade
    • Fraud & Scams
    • Risk Mitigation
    • Security Protocols
    • Data Protection
  • ITC News
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    • ITC Business Councils Highlights
  • Events
    • Upcoming Conferences
    • Upcoming FREE Educational Webinars

© 2024 International Centre for Trade Transparency Limited. Incorporated in the United Kingdom.