Stakeholders are underestimating the risks. How will you ensure they take them seriously?
In the realm of risk management, it's not uncommon to find stakeholders who might not fully appreciate the gravity of the risks their projects or businesses face. As a key player in ensuring the longevity and success of your organization, it's crucial to convey the significance of these risks in a manner that commands attention and fosters a culture of risk awareness. Whether it's due to a lack of understanding or simply an optimistic bias, the challenge lies in bridging the gap between perception and reality.
-
Ray RamsayRisk Management Professional | CPRM | Behavioural Risk and Risk Culture Specialist | Behavioural Psychologist | Board…
-
Joel O.Information Security Engineer| Risk management| Vulnerability and Configuration Management| Azure Cloud Operations…
-
M.Salman KhanFounder & CEO - KYR Consulting, Training & Advisory Solutions | Corporate Trainer | Linkedin Top Voice | Helping…
Understanding how stakeholders perceive risk is the first step to ensuring they take it seriously. Often, cognitive biases can lead to a disconnect between the actual risk and the perceived risk. By engaging with stakeholders, you can uncover their assumptions and beliefs about the risks at hand. This insight allows you to tailor your communication strategy, ensuring that it resonates with them and addresses their specific concerns.
-
In my experience, tailoring communication strategies based on stakeholder perceptions makes messages more impactful. For example, when explaining new security protocols; we used real-world examples of recent breaches faced by similar companies to illustrate potential consequences—this approach resonated better than abstract statistics alone.
-
A percepção de risco é crucial em qualquer empreendimento, especialmente para diretores de expansão. Ter uma visão macro do projeto e entender o contexto geográfico, político e socioeconômico são essenciais. É igualmente importante reconhecer a preparação e a validação de cada superior. Cada líder possui uma percepção de risco moldada por suas experiências pessoais, profissionais e acadêmicas. Compreender essa diversidade de perspectivas é fundamental para garantir o alinhamento e o respaldo necessário para o sucesso do projeto. Todo empreendimento enfrenta desafios e atrasos que muitas vezes são subestimados devido a crenças limitantes ou excessivo otimismo. Reconhecer esses fatores e preparar-se para eles é vital.
-
Es mi experiencia, cuando se comienza con el proceso de gestión de riesgos pueden suceder dos escenarios, el primero que los riesgos sean tomados muy en serio y se pierda de vista el costo-beneficio de un control, o bien que no sean tomados en serio y en cierta forma esos riesgos puedan verse materializados. Lo importante es tener tallecer de sensibilización y empezar por los riesgos operativos que más significado pueden tener para poder ir entrando a los riesgos más estratégicos.
-
Stakeholders often underestimate risks due to cognitive biases or a lack of understanding. It’s essential to present risk in relatable terms, emphasizing potential impacts on business objectives. Using my extensive background, including my tenure at Sterling Bank & Trust where I managed complex risk portfolios, I’ve developed strategies to frame risks in a context that resonates with stakeholders.
-
Understanding how stakeholders see risk is key to making sure they take it seriously. Sometimes, cognitive biases cause a gap between actual risk and perceived risk. By talking with stakeholders, you can find out their assumptions and beliefs about the risks. This helps you customize your communication strategy to make sure it hits home and addresses their specific concerns.
Effective communication is the cornerstone of altering stakeholder perceptions about risk. It's essential to present information clearly and concisely, avoiding jargon that may obscure the message. Use relatable scenarios to illustrate potential outcomes and ensure that stakeholders understand the implications of ignoring risks. Your goal is to create a narrative that not only informs but also motivates stakeholders to act.
-
One thing I've found helpful is avoiding jargon that may obscure the message. For instance, instead of using terms like "phishing" or "malware", I explained them as deceptive emails or harmful software designed to steal information—this approach made the risks more understandable for everyone involved.
-
Ensure that the project goals are aligned with the investors’ objectives from the outset. Understanding their risk tolerance and return expectations will allow you to tailor the project plan accordingly. Discuss and agree on key milestones and potential risks before project commencement. If misalignment occurs during the project, take the time to reassess and realign goals with investors, ensuring their concerns are addressed while keeping the project’s integrity intact.
-
A comunicação eficaz é crucial para mudar a percepção dos riscos entre os superiores. Informações claras e concisas, livres de jargões, são essenciais. Cenários relacionáveis ajudam a ilustrar possíveis resultados, assegurando a compreensão das implicações de ignorar riscos. Porém, não é apenas a apresentação em PowerPoint que convencerá a diretoria; seu comportamento, imagem e como seus pares e superiores o veem são fundamentais. Uma comunicação oral eficiente, aliada à sua postura e ao contexto em que se insere, é vital para persuadir. Crie uma narrativa que informe e motive à ação, combinando conteúdo claro com uma imagem profissional sólida.
-
Effective communication is key to changing how stakeholders perceive risk. It's important to present information clearly and simply, avoiding jargon that might confuse the message. Use relatable examples to show potential outcomes and make sure stakeholders understand the consequences of ignoring risks. Your aim is to create a narrative that not only informs but also motivates stakeholders to take action.
-
Uma comunicação clara, transparente e com projeção de cenários hipotéticos, pode ser usado para determinar o tamanho do risco que está sendo negligenciado. Uma boa prática em casos de maior atrito, é pesquisar e apresentar casos similares em que determinados riscos foram inobservados e as suas consequências para aquela organização.
Implementing a structured risk management framework can help stakeholders visualize and understand risks better. This framework should include identification, assessment, and prioritization of risks, followed by the development of strategies to mitigate them. By involving stakeholders in this process, you give them a sense of ownership and responsibility, which can lead to a more serious attitude towards risk management.
-
Implementing a structured risk management framework can help stakeholders see and understand risks more clearly. This framework should cover identifying, assessing, and prioritizing risks, followed by creating strategies to mitigate them. By involving stakeholders in this process, you give them a sense of ownership and responsibility, which can lead to a more serious attitude towards managing risks.
Scenario analysis is a powerful tool in risk management. By presenting stakeholders with a range of possible outcomes, from best-case to worst-case scenarios, you help them grasp the potential impact of risks on their interests. This method encourages stakeholders to consider the full spectrum of possibilities and can be a wake-up call for those who have underestimated risks.
-
Implementing scenario planning can help anticipate potential risks and develop strategic responses in advance. By creating multiple ‘what-if’ scenarios, you can outline different paths the project might take based on varying risk factors. This proactive approach allows you to quickly adjust strategies when circumstances change, ensuring that both project goals and investor risk tolerances are considered. Presenting these scenarios to investors demonstrates foresight and preparedness, reinforcing your commitment to managing risks effectively.
-
Scenario analysis is a potent tool in risk management. It shows stakeholders a spectrum of outcomes, from best-case to worst-case scenarios, helping them understand how risks could impact their interests. This approach prompts stakeholders to consider all possibilities, serving as a wake-up call for those who may have underestimated risks.
Investing in training and education for stakeholders is an effective way to elevate their understanding of risks. Workshops, seminars, and regular briefings can keep risk management principles fresh in their minds. When stakeholders are well-informed about the methodologies and tools used to manage risks, they are more likely to take them seriously and support risk mitigation efforts.
-
Manter uma equipe bem treinada e alinhada com as condições da empresa é essencial, especialmente em ambientes de risco. Mais do que treinamento e insights, é vital contar com indivíduos que possuam uma visão inovadora e intuição diferenciada. Embora o conhecimento do produto seja fundamental, a capacidade de enxergar além do óbvio distingue uma equipe. Para superar o básico, é crucial identificar, reter e treinar esses talentos, integrando-os à cultura e objetivos da empresa. O talento nato, não ensinável, proporciona uma sagacidade e desempenho superiores à concorrência. Devemos focar na busca por esses indivíduos excepcionais para evitar uma performance mediana e destacar-se no mercado.
-
Investing in training and education for stakeholders is a smart way to enhance their grasp of risks. Through workshops, seminars, and regular briefings, you can keep risk management principles current in their minds. When stakeholders understand the methodologies and tools used to manage risks, they're more inclined to take them seriously and back efforts to mitigate risks.
Lastly, continuous monitoring of risks ensures that stakeholders remain engaged with the risk management process. Regular updates on the status of risks, as well as any new emerging threats, keep risk at the forefront of decision-making. This constant vigilance reinforces the message that risk management is an ongoing priority, not a one-time task.
-
Keeping continuous tabs on risks ensures stakeholders stay involved in the risk management process. Regular updates on risk statuses and new emerging threats keep risk top of mind in decision-making. This ongoing vigilance underscores that risk management is an ongoing priority, not a one-off task.
-
O monitoramento de risco é essencial para o desenvolvimento sustentável de qualquer processo empresarial. Minimizar riscos, frequentemente presentes em mercados dinâmicos, garante que todos na equipe e na diretoria estejam cientes dos acontecimentos e prontos para evitar surpresas indesejáveis. Esse monitoramento constante reduz estresse, excesso de capital e vulnerabilidade, demonstrando compromisso com a empresa e o capital investido. Uma equipe que monitora seus riscos, seja em mercados saturados, expansões, ou novos produtos, permanece alerta e comprometida. A antecipação de problemas, característica de mercados dinâmicos, permite a tomada de decisões mais rápidas e eficazes, assegurando o sucesso e a estabilidade financeira da empresa.
-
If stakeholders are underestimating risks, manage them to take it seriously by: 1. Clear communication: Explain risks in simple, straightforward language. 2. Data-driven approach: Present factual data and statistics to illustrate potential impacts. 3. Scenario planning: Develop realistic scenarios to demonstrate potential consequences. 4. Risk assessment: Conduct thorough risk assessments and share findings. 5. Stakeholder engagement: Involve stakeholders in the risk assessment process. 6. Impact analysis: Analyze potential financial, operational, and reputational impacts. 7. Regulatory compliance: Highlight relevant regulatory requirements or industry standards. 8. Expert opinions: Share insights from industry experts.
-
In my experience, this is often due to a company baseline risk appetite that has not been fully adopted. - Find ways to understand and connect all 2nd and 3rd line information/findings flows in order to create a risk view - Partner heavily with the 1st line - they are the keepers to day-to-day customer/platform exceptions and behaviors - Deeply understand your company’s governance framework, most especially building a view of your firms’ committees and what matters - Assess deviations between all internal teams when it comes to Risk - Secure sponsorship and buy-in from your leadership when building your risk appetite (this will take enormous time), but plan for multiple iterations
Rate this article
More relevant reading
-
Risk ManagementHere's how you can uncover potential risks by thinking outside the box.
-
Risk ManagementWhat do you do if you overlook your own biases when managing risks?
-
CommunicationHow can you communicate effectively with people of varying risk management skills?
-
Risk ManagementHow do you persuade senior management to take risks?