Tuesday, August 28, 2012

Using common knowledge to manage risk

The power of knowledge is well known to all of us. How we distribute knowledge within our business can be a very efficient way of managing risk. If critical business knowledge is housed within different  organizational functions without a conscious way of sharing the knowledge creates these  “knowledge power” islands within the business.
 
He or she who has the knowledge, has the power and how this power is used can be for the good or be most harmful. Information technology departments often use this knowledge power to their advantage either unconsciously  or other wise to dictate what will be done or wont be done whether it is for the common good or not.
 
Another example of knowledge power may be found in the finance department. The knowledge of how certain decisions impact both the income statement and the balance sheet can significantly change the decision. Often these core concepts are not shared with significant consequences that could have quiet easily have been prevented in the first place.
 
This might be a good time to introduce the "blind spot" which can be defined as knowledge know by some, but not by others.
 
The blind spot will always be there but how well we create an environment for common knowledge to manifest itself will be an important factor in reducing the blind spot risk.
 
 in order to do your common knowledge audit. Please consider how each of these business systems empower knowledge sharing.
•        Business strategy knowledge
•        Process knowledge
•        Information access capabilities
•        Policy knowledge
•        Measurement and expectation knowledge
•        Financial performance knowledge.
 
The greater the degree of common knowledge throughout the organization the more effective the business is in getting things done the right way.

No comments:

Post a Comment