Operations hears that a key supplier will miss deliveries but refuses to tell purchasing because 'that is their problem.' What corporate risk-communication principle is violated?
Select an answer to reveal the explanation.
Short Explanation
Imagine the left hand knowing the bridge is out and not telling the right hand that still plans to drive across. Shared exposure means shared warning. Supplier delay hits both ops and purchasing, so the heads-up has to cross the silo.
Full Explanation
Cross-functional risk consultation exists because one department's early signal is often another department's control opportunity. Withholding supplier delay warnings from purchasing leaves shared exposure unmanaged. Hierarchy and communication design should route material risks to every function that must act. Silo refusal is a process failure, not a protected boundary.