Leaders of organizations must manage risks in order for the entity to stay in business. Traditional approach to risk management is often referred to as silo or stove-pipe risk management. Risks dont follow managements organizational chart and, as a result, they can emerge anywhere in the business. A risk that seems relatively innocuous for one business unit, might actually have a significant cumulative effect on the organization if it were to occur and impact several business functions simultaneously. The focus of traditional risk management focuses on internal operations, rather than external risks.”]
Source: https://erm.ncsu.edu/library/article/what-is-enterprise-risk-management