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Cross-Functional Risk

Risk that spans multiple departments or functions and cannot be owned or managed by one team alone, such as a risk involving IT, legal, and operations together, requiring coordination across the organization to address.

Many significant risks do not respect organizational boundaries: a third-party data risk touches procurement, legal, security, and the business unit at once. Cross-functional risk is managed through coordination, often via a risk committee, shared ownership, and integration into enterprise risk management, so no risk falls through the cracks between silos. Recognizing and coordinating these risks is essential to a complete enterprise risk picture.

Introduced in: Risk Management Fundamentals

Examples

  • A vendor data-breach risk spanning security, legal, and procurement.
  • Coordinating a risk that involves IT, operations, and compliance together.
  • Bringing a cross-functional risk to a risk committee for shared ownership.

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