What do you do if your stakeholders are resistant to hearing about risks?

Business is full of risks due to internal and external factors, ever changing business scanerio and competition. Every business has to go through the business cycles irrespective of the sector. Investors expect a better reward ratio which is possible only if they allow risk and rewards alignment. The Management team's job is to balance the risk and communicate the same on a periodical basis to investors, they need to create a communication channel between business and investors so that both are aligned with each other. If the investors expect high rewards, they will allow higher risks and if they are risk averse, the return will be accordingly low.

Start by framing risks in the context of opportunities. Show how addressing these risks can lead to improved outcomes and align with their goals. Use data and examples to make your case. Concrete evidence can often speak louder than theoretical concerns. Focus on communication that is clear, direct, and devoid of technical jargon. Make your message as accessible and understandable as possible. Offer solutions along with the risks. Stakeholders are more receptive when they see a clear path forward rather than just obstacles. By adopting this approach, you can turn resistance into engagement, ensuring that risks are addressed proactively for the success of your project.

Some professionals find understanding actual risk concerning. Let's face it—considering the impacts can be scary. Nobody likes to speak about potential failures, so we do not lead with fear. We lead with change management processes to create a collaborative and non-threatening environment for impactful conversations and consensus. We are big fans of John Kotter's framework for leading change. Two powerful tools we rely on are visioning and maturity modeling. In this fashion, we facilitate the team's identification of their own barriers to progress, opportunities for improvement, and, ultimately, their strategic vision to determine where they would like to be as an enterprise. Now we can develop strategies and transform the risk picture.

One interesting point that gets understated on the importance of Risk management is that it can be used as a Business enabler. Who wouldn’t want to do business with the most secured organization in any industry whether it is a B2C setup or a B2B set up? It is essential for Risk leaders to deliver this message subtly albeit repeatedly to leave a lasting impact on the Business leaders !

In my experience, stakeholders are understandably proud of their operation. Hearing about risks and potential risk management deficiencies can feel like criticism. It’s important build trust and affirm their success and positives while demonstrating an understanding of the big picture before pointing out areas that need attention.

Make them aware of the risks that they are facing and the impact of those risks, thereafter outline the preventative strategies and how they can be implemented to minimize risks.

Não há tema no mundo corporativo que não necessite ser tratado através da comunicação não violenta, empática e educada. Compliance, governança, sustentabilidade, diversidade ... Tantos temas que são permeados pela mitigação de riscos reputacionais precisam estar envelopados pela gentileza e compreensão. Executivos, gestores, colaboradores, independente de cargos, para receberem com atenção e engajamento qualquer assunto, especialmente riscos, o diálogo precisa ser recheado de escuta ativa e colaboração. Riscos são fatores determinantes, presentes e inevitáveis. Quanto antes compreenderem isso, melhor será a construção de controles e mitigação de impactos.

Consistency and persistence always pays off when dealing with complex and sometimes abstract concepts like Risk. "Gently educating" is not good enough in most organisations. Regular risk review sessions with tangible examples are necessary to highlight the importance of risk treatment.

When stakeholders resist discussing risks, foster an open dialogue by reassuring stakeholders that addressing risks proactively can lead to better outcomes and increased success in the long run. In addition, emphasize the potential impact on their goals. Utilize real-life examples or case studies to illustrate the consequences of ignoring risks.

Para abordar a resistência dos stakeholders quanto aos riscos, adote uma estratégia robusta que integre: comunicação transparente, personalização do engajamento com base em suas preocupações específicas, utilização de tecnologia para visualizar impactos e manutenção de um diálogo contínuo. Essa abordagem promove confiança, compreensão e colaboração efetiva na gestão de riscos.

É muito comum o time envolvido na agenda não ter uma clareza de como expressar suas visões sobre os riscos. É dever do gestor de risco auxiliar no entendimento e aplicação do conceito para guiar a discussão de uma forma criativa e clara transformando em um ambiente seguro, dando oportunidade na participação dos atores no processo, expressando suas opiniões.

To be effective in your actions, first you need to identify the key stakeholder that will listen and take actions. Then you'd better understand his interest. After you plan your way of establishing the first dialog, you need to be as much clear and concise as you can, ready with your research, better to have it visualized and when getting to the part of suggestions/conclusions try to prioritize risks. If you are doing right, you'll get a two-way communication and involvement from the stakeholder. Keep on providing updates to the stakeholder and get feedback.

Collaborate with stakeholders to develop actionable plans that address their specific concerns while aligning with project objectives. Highlight the benefits of proactive risk management in achieving project success.

Due to capital constraints, resource constraints stakeholders are always less receptive to new risks being identified. However, if you go to them with probable solutions or even plans regarding tackling the risk. They would be much more receptive.

I implement this approach for every issue I encounter at work, presenting the problem to my colleagues along with my perspective on how to tackle it. But, continuously offering solutions can lead stakeholders to become accustomed to quick fixes, potentially overshadowing the importance of listening to and understanding the underlying problems first.

The business teams already heard a lot of bad news like market fluctuations, clients moving on to some other competitor etc. The risk management professionals have to be mindful of the timing and the way in which the risk management plans are presented. If the planning is proper, the professional will end up happily convincing them.

Once risks are identified, our work with the stakeholders is to quantify (1) the probability of occurence, (2) the impact, and (3) the probability of detection. With these indicators, we can categorize risks and define our strategies (mitigate, eliminate, transfer, or accept). Here is where we offer solutions.

Explain to your stakeholders that the formula for risk is the impact of the risk impacting the company x the probability of the risk impacting the company. Have each functional leader score their top 3 risks, then action plan the highest risks only. This exercise makes your program more defensible post incident.

It’s essential to communicate the potential impact of those risks in a way that resonates with their interests and concerns. You can:Frame risks in terms of potential negative outcomes and their implications. Use data and evidence to support your assertions about the likelihood and severity of risks. Offer solutions or mitigation strategies alongside the identification of risks to demonstrate proactive planning. Emphasize the importance of risk management in protecting project objectives and investments. Seek to understand their reasons for resistance and address any underlying concerns or misconceptions. Consider involving a neutral third party, such as a facilitator or consultant, to help navigate discussions about risk with stakeholders.

Leveraging influencers can be valuable in engaging stakeholders on risk-related topics. Identify key influencers within or connected to your organization who can advocate for risk management. These influencers can use their credibility and reach to educate stakeholders about the importance of understanding risks and achieving clear objectives. By partnering with influencers, you can amplify messages, increase awareness, and inspire action among stakeholders who may initially be resistant to risk discussions. This approach leverages trusted voices to promote a culture of risk awareness and accountability within the organization.

Identifying and leveraging influencers among your stakeholders can be an effective strategy for overcoming resistance. These are individuals who have the respect and trust of their peers and can influence opinions and attitudes. Engage with these influencers, share your concerns about risks, and enlist their help in communicating the importance of risk management to the wider group.

Identify key influencers within the organization who can champion the importance of risk management and help sway resistant stakeholders. Cultivate relationships with these influencers, seeking their support in advocating for risk awareness and fostering a culture of proactive risk management.

Adapt your communication approach to suit the preferences and needs of different stakeholders. Utilize various channels and formats to convey risk information effectively. Tailor your messaging to resonate with each stakeholder group, emphasizing the relevance and urgency of risk management.

Majority can assess the impact, clarity, and efficacy of the message with the aid of feedback. Additionally, it helps to establish rapport and trust with stakeholders while enhancing communication abilities.

You must be able to adapt yourself, your methodologies, your communication, to have a better result in achieving your objectives with transmitting risk mitigating information. Know your audience. This is the key to a successful outcome. For example, you must know that: if you are working with the Commercial side, they are more "visual", more "practical"; If you are dealing with other Financial sectors, they would probably be more analytical, and so on. By knowing your audience, you can adjust your communication, your presentation and the material to obtain better results.

Lastly, adjust your communication style to match the preferences of your stakeholders. Some may prefer detailed reports, while others might respond better to high-level summaries or visual presentations. Tailoring your communication ensures that the message about risks is not just delivered but also received and understood. By being flexible in your approach, you can overcome barriers to communication and ensure that all stakeholders are informed and prepared to address potential risks.

Tailoring communication to your audience is key to ensuring that your message is effectively received and understood. This involves not only adjusting the tone and complexity of your communication but also considering the specific preferences and knowledge level of your audience. In addition to tailoring your communication, repetition plays a crucial role in reinforcing key concepts and ensuring they remain in the minds of your audience. Research from MIT suggests that a thing or a concept needs to be repeated from 20 to 26 times to be effectively retained. Therefore, incorporating repetition into your communication is essential for taking home important messages and fostering understanding.

1st Build Trust: When stakeholders have trust on your judgement and expertise, they are more likely to be receptive at what you say and offer. 2nd Offer Solutions: Leverage on the trust to offer valuable solutions to manage the risks. Repeat.

Risk management has become a compulsory part of corporate governance which is basically enforced by most regulators. The approach is the risk management process is add value(visible ones) such as reduction is fines and penalties by complying with relevant laws, diversification of portfolio( various classes investment Bond, money market and equities) operational efficiency ( reduces human errors and turnaround time) and so many areas health and safety business continuity testing etch

Navigating resistant stakeholders feels like untangling a web of worries and doubts. It's all about fostering genuine connections, like sitting down for coffee and sharing stories of how clever risk management saved the day in the past. These tales really drive home the importance of seizing opportunities, even in the face of adversity. By grounding our discussions in real-life examples, we're inviting them to join our team, to be part of something meaningful. Trust? Well, that grows naturally when we're honest, patient, and open with each other. When we build these human connections, overcoming obstacles becomes a joint adventure, strengthening our bond every step of the way.

In more detail, when presenting risks to stakeholders, always pair them with potential solutions or mitigation strategies. This approach shifts the focus from problems to problem-solving, which can be more palatable for those who are risk-averse. By demonstrating that you’re not just a bearer of bad news but also a proactive problem solver, you can alleviate concerns and encourage stakeholders to take a more active role in managing risks.