Decentralized risk models allow front-line units to manage risks directly, fostering ownership and faster decision-making. This is especially useful in stable environments where predictability allows standardization.
Extract from HRCI-aligned HR knowledge (Risk Management):
SPHR-level HR must evaluate “centralized vs. decentralized risk governance models.” In stable conditions, decentralization allows teams to manage risks autonomously, reducing bottlenecks and bureaucracy.
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