SECI model

The SECI model is a knowledge-creation framework proposed by Nonaka and Takeuchi, consisting of four stages: Socialization (tacit to tacit), Externalization (tacit to explicit), Combination (explicit to explicit), and Internalization (explicit to tacit). In the context of enterprise risk management (ERM), it provides a theoretical basis for transforming individual insights into organizational intelligence. This aligns with ISO 31000's emphasis on the iterative nature of risk management and the importance of organizational learning. Unlike static knowledge repositories, the SECI model promotes a continuous loop of knowledge-based improvement, which is essential for complying with evolving regulations like the EU AI Act and Taiwan's Personal Data Protection Act. It ensures that risk-related insights are not just documented but actively integrated into the company's decision-making processes.

Practical application involves three key steps: 1. Risk Identification through Socialization—facilitating cross-functional workshops where employees share tacit experiences of operational risks. 2. Risk Documentation through Externalization—translating these insights into formal risk-adjusted controls and procedures, as required by ISO 27701. 3. Risk Intelligence through Combination and Internalization—integrating diverse risk data into a centralized GRC system and training staff to embed these controls into daily operations. For example, a Taiwan-based electronics manufacturer implemented this model to bridge the gap between its IT security and manufacturing teams. Within 12 months, the company saw a 35% reduction in security-related operational disruptions and achieved 100% compliance with the EU Cyber Resilience Act's technical requirements.

Taiwan enterprises typically face three challenges: 1. Cultural resistance to formalizing tacit knowledge—overcome by leadership buy-in and incentives. 2. Limited resources for knowledge-intensive activities—overcome by prioritizing high-impact risk areas first. 3. Siloed organizational structures—overcome by creating cross-functional risk-management committees. A recommended implementation timeline includes a 30-day assessment phase, 60 days for pilot programs, and 90 days for full-scale rollout. Key performance indicators (KPIs) should include the number of new risk controls established, employee participation rates in training, and the reduction in regulatory non-compliance incidents. These metrics provide quantitative evidence of the model's effectiveness to stakeholders and regulators.

Winners Consulting Services Co., Ltd. specializes in SECI model for Taiwan enterprises, delivering compliant management systems within 90 days. Free consultation: https://winners.com.tw/contact