The Risk of Unheard Warnings — How Suppressed Signals Trigger Operational Failures

Today, the loudest failures often follow the quietest warnings. Not because no one saw them coming—but because someone did, and the system failed to listen.

Operational risk is no longer defined solely by failures in processes, systems, or external disruptions. Increasingly, it stems from something far harder to quantify: the failure to recognize, interpret, and elevate early signals of internal misconduct, breakdowns in oversight, or cultural deterioration. These signals are often present long before a public scandal, a regulatory penalty, or a financial collapse. But too often, they go unheard.

This article examines the phenomenon of risk signal suppression—why organizations ignore the earliest warnings of operational failure, how this risk materializes inside complex institutions, and what forward-looking ORM programs must do to identify and act on weak signals before they become systemic threats.

John A. Wheeler

John A. Wheeler is the founder and CEO of Wheelhouse Advisors, a global risk management strategy and technology advisory firm. A recognized thought leader in integrated risk management, he has advised Fortune 500 companies, technology vendors, and regulatory bodies on risk and compliance strategies.

https://www.linkedin.com/in/johnawheeler/
Sign up to read this post
Join Now
Previous
Previous

The Risk Ignored – Part 1, Chapter 1: The Software That Lost Its Market

Next
Next

Culture as Capital Risk — Lessons from the ANZ Breakdown