Building organizational knowledge for risk management in a bank supervision division

• Main Author: Villanueva, Jan Carlo M.
• Format: text
• Language: English
• Published: Animo Repository 2022
• Subjects: Knowledge management; Intellectual capital; Business Administration, Management, and Operations; Management Information Systems
• Online Access: https://animorepository.dlsu.edu.ph/etdm_manorg/123
• Institution: De La Salle University

This action research was about building organizational knowledge for facilitating effective and dynamic risk management within a bank supervision unit. Undergoing the action research process, it was determined that there were gaps in how knowledge was handled within the unit. Namely, there was an opportunity to expand knowledge creation through offsite activities, and there were existing knowledge silos among the individual unit members. Principles for risk management provide that risk management must be contextual, structured, dynamic, and knowledge-based. Guided by these principles, an insight tool was developed to address both identified issues. The tool was hinged with the new supervisory framework to provide context and scope, while its contents implied necessary procedures to promote dynamism and continuous knowledge creation. However, it was determined that more than establishing the tool was needed. The unit identified familiarity gaps in the tool itself and the technology surrounding it that needed to be addressed before all unit members were motivated and able to use the same. The tool was recalibrated through user testing, promoting easier-to-use features, and articulating a user guide to address these. Opportunities for knowledge sharing in other aspects of offsite supervision not directly related to the new framework were also taken. At the end of the exercise, the shared tool became a shared folder. In hindsight, the process we underwent was an application of dynamic organizational knowledge creation. Notably, the collaborators' activities confirmed the value of Nonaka’s SECI model for initiating organizational knowledge creation. Technological capabilities represented Nonaka & Konno’s ba, magnifying capabilities to socialize and externalize. All knowledge gained during the exercise was then consolidated into a single framework for organizational knowledge – from factors inducing knowledge creation, the modes for knowledge conversion, and the value of incremental change to facilitate more knowledge creation.