What are the most effective ways to report risks to senior management?

Every leader is different in the way they process, share and in this case receive information. Most of the time, I only need the summary, major issues, and potential solutions. However, I have worked with leaders that want a 20 page analytical breakdown to validate the summary as well. As with anything in life, relationships and established rapport are paramount to understanding the preferences of the individuals involved. If time has been invested into the relationship, then those preferences are not unknown and the outcomes and solutions will be received more receptively. Rather than stressing about reports, make sure you put the time in to build rapport and trust with your coworkers. I share this from experience and lessons learned.

When communicating the risk senior management, here is some practice I have been using 1. Focus on the problem but not who might cause it - what we need to tackle is the risk and all of its ongoing or potential business impact, and we need to get our focus straight on the issue itselves 2. Usuing SCR model ( Situation, Complication and Resolution). in addition to highlighting the risk and the impact, also suggest solution or options that can help us mitigate the risk.

Knowing your audience is critical to understanding how what you say will land. It is all about making the greatest impact in a very short period of time. Ultimately executives want to get to the heart of what the risk entails and you will need to be focused and targeted in your approach to reporting.

Demonstrating the "why" behind your idea showcases your initiative, strategic thinking, and understanding of the bigger picture. This builds trust and positions you as a problem-solver, not just someone with ideas. Remember: Speak their language. Use data, metrics, and clear ROI projections to quantify your value proposition. Be concise, confident, and anticipate potential concerns. By effectively communicating the value you add, you turn ideas into actionable opportunities, gaining the attention and support of senior leadership.

When reporting risks to senior management, a direct and straightforward approach is essential for clarity and impact-Tailor your message to their strategic perspective, prioritize risks, and use a mix of quantitative and qualitative data. A direct approach fosters transparency, enabling senior management to make informed decisions promptly.

Knowing your audience and THEIR audience is critical to success. Understanding how your immediate manager needs and wants to process is foundational. Written, phone call, immediate even if you only have partial info, etc..? Those are all things that are important considerations. ProTip: The next immediate thought has to be, how is my boss going to need to communicate to their boss. That's where true empathy comes in. Once you understand that, you set your boss up for success by communicating with them in their own desired pathway AND include comms in a way that will help them communicate to their boss. This is at the epicenter of managing up. And no matter what, No Surprises.

We need to understand what the risk is,There are clear red flags in risks for example is the risk about doing something unethical or damaging to others,even if it's a side effect it must be reported immediately and efforts must be made to stop it On the other hand if risk is about borderline challenges and pushing yourself or trying something new,we should prepare a list of predictable and unpredictable areas and then discuss the latter with the seniors that will give us clarity about the views of management and if any precautions or corrective action needs to be taken.

Risks are everywhere. It is important to 1. Be proactive in identifying risks. 2. Be able to call out the probability of the risk occuring (High/Medium/Low) 3. Be ready with mitigating factors to minimize the risk 4. Identify an owner who will not only be responsible but also accountable to handle the risk when it occurs 5. Proactively work towards a deadline to mitigate the risk.

Personally, I am not just a leader but a project manager so I am familiar with this activity. Community risk to a senior management board requires some form of wisdom. 1. Be sure you did your calculations right before bringing it up in the meeting. 2. Community with humility not as one who knows all things but say it firmly. 3. Have at least one way to mitigate the risk and present it to the board. 4. Create room for the opinions of others.. this is very important..

I can’t agree more, my approach is similar, but you always remember that if came to your leader with the risk without coming up with solutions you became part of the problem, That’s why you have to prepare the suggested mitigation of the risk or you will simply be just a burden to your employer.

Honestly, the best thing is to report risks as early as possible. You may not have full sight of it as yet. You may not have a solution. It doesn't matter. Early warning can bring a possible challenge to the team's attention, where there may be someone with a great mitigation strategy.

Transparency is key. It saves time for all the interlocutors and gives the message's recipient the purest information possible. Whether they want to face the brutal facts, it is not up to you to evaluate or judge.

It can be difficult to deliver bad news to the boss. Nobody wants to take the risk of having to answer the follow up questions of "why". Here are some tips to get the job done while being transparent and honest: Be as direct as possible stating the result first, then get into how it happened. You can use this format: The Result, The Reason, The Accountability, The Fix. For instance: "The project failed to meat the 3rd Quarter goals. We fell behind on scheduling the supplies and dropped the ball. We have already starting to work with our suppliers to communicate daily the status until we are back on schedule." Leaders always take the responsibility of failure. It is why there are not many people claiming the title.

As the saying goes, good news travels fast but bad news should travel faster. One mechanism is to include a section in a weekly operations report for the bottom three things that happened for the past week. This is where a risk, or problem can be reported. Include key metrics, remedial actions and recommended remedial action owners. Be sure to keep the language as simple as possible. Write in a way that the risk can be escalated quickly up the organisation for a go/no go decision without much explanation.

Transparency plays a pivotal role in reporting risks to senior managers. It's not just about conveying information but fostering trust and informed decision-making. Here are some points to keep in mind. Clarity in Communication: Use straightforward language to articulate complex risks, ensuring everyone comprehends the current threat or situation. Context: Emphasize the risk's potential impact on the organization's objectives, providing a clear understanding of its significance. Consistent Updates: Maintain regular communication channels to offer ongoing risk updates. Transparency is always your friend and it’s a strength that builds a culture of openness and responsibility, leading to better outcomes.

In my experience we have to explain it in the simplest way to explain to our higher management about risk factors based on true facts, analysis and situation. Even between 10 to 30% risks will also need to be transparent in advance than keeping quiet and let it be till real things happened.

Ao relatar riscos o colaborador deve se atentar aos fatos e ao desvio de conduta e/ou processo que está representando um risco às Pessoas, Processos ou Produtos. Assim, eliminar o subjetivismo e ater-se aos dados faz com que a transparência e honestidade seja atendida.

Own them as your risks. Present your solutions and your mitigants. Most organizations are comfortable to retain elements of risk as long there are guard rails to operate within. Open and honest communication is always key, as is that demonstration of your understanding of the risks and how they can be overcome.

When you bring a risk forward to senior management bring along along a mitigation strategy. It is always more effective to provide a solution and recommendation to your boss rather than simply another problem. One of the reasons you were hired was to solve problems, not bring them to your boss to solve. This is where you want to gain the insights and recommendations of your teammates. You may not have all the answers but as a team, you can probably find a viable solution and recommendation. Finally, if you do use an idea brought up by one of your people be sure to give that person the credit. It goes a long way in terms of growing trust.

I love transparency, but let’s be honest. All cultures are not conducive to truth telling. To avoid being the proverbial messenger in danger of getting shot, always lead with solutions. Laying a problem at leadership’s feet without a solution or at least a willingness to find one could put you in jeopardy.

If there are multiple potential solutions, which I found is the case most of the time, it is recommended to articulate pros and cons of those options (use both data and anecdotes) and then provide a recommendation based on a mental model that you think is appropriate.

Present risks with at least options to turn them into opportunities. ESG is one such toolbox full of measures to depress the cost of equity capital.

Three things that help when raising a risk to leaders are: 1) leverage data, stories, and examples where available 2) propose alternatives you’ve considered along with your recommended solution 3) remain open to an alternate solution Approaching leaders in this way shows you’ve done your homework but also value others perspectives. As a result, you create a growth mindset culture over a know it all culture.

Simpy put is...open communication and you have a plan of action. Even if you're unsure about what the right solution is going to be, being able to a raise the concern and advise your next steps and when you'll put forward solutions - brings forward a sense of accountability and awareness of the problem before anyone else says anything. Work and communicate with your team or cross-functional teams, and or even senior leadership, on realistic solutions, reduce scope, reassess resources, cost-effective measures to really mitigate the problem and how you're going to steer the team back on track and stay there. Get support from your team and you'll get senior leadership approval/support on your risk management plan you've proposed.

Wenn man Risiken aufzeigt, dann sollte man einen way forward aufzeigen. Das schlimmste Gefühl, was man auslösen kann, ist Hilflosigkeit. Gefühlte Hilflosigkeit ist oftmals der Auslöser für Panik und aus Panik ist noch nie etwas Sinnvolles entstanden. Zudem sollte man nie versuchen, ein Risiko bzw. ein Problem in Gänze zu lösen. Damit überfordert man sich selbst wie die Organisation. Mache das große Problem klein, indem du Teilprobleme löst, Teilrisiken mitigierst.

When you focus on solutions while reporting risk to Senior Management there are high chances of quick decision making. Because at senior level they need to know what they can do to either exploit or mitigate the risk and how, rather than focusing on what kinds of risks are being reported.

In my opinion, risk reporting should be oriented towards solutions and proactive management. It's important to detail ongoing and planned actions to manage, monitor, and mitigate risks, emphasizing how these steps align with the project's objectives and quality standards. Demonstrating the added value and potential opportunities of your risk management approach can turn the narrative from problem-focused to opportunity-focused. Proposing solutions that are realistic and cost-effective shows practicality and foresight. Engaging senior management through seeking their feedback and approval ensures that the risk management plan is collaborative and supported at the highest level.

When I worked in government, we would have to prepare briefing notes for a minister, with a brief background, current situation, options and recommendations - this is a good approach. The key is the word brief, not a wordy document, but straight to the point, then it is more likely to get read. I've carried on this method throughout my career.

Visuals and stories are great. Do not, however, make the mistake of putting all your thoughts and data into your presentation. That just becomes confusing. Authors write a first draft. Then they edit, often several times, to remove anything that doesn't specifically contribute to the story. You need to do the same with presentations. Also, don't overuse colour. Having only two to three colours will reduce the visual complexity of the presentation. Remember that you are communicating a message, not showing off your graphic design skills.

"Seeing" something puts brains at more ease. It allows us to visualize something. As the brain is a series of maps, it is easier for the recipient to connect to the content. If they can connect to the content and it doesn't feel like something new, as brains don't like something they are not familiar with, you are more likely to engage leaders in a positive way. The same goes for stories. Stories are a way to create familiarity with the leaders you are presenting to. Our objective when speaking up about risks and mistakes, is to not be seen as a threat to the leaders on the receiving side. Visuals and stories will increase the likelihood they engage with what you have to say and get curious and ask questions versus defensive.

incorporating visuals and stories into risk reporting enhances engagement and comprehension. Utilizing charts, graphs, and tables helps in presenting complex data, trends, and comparisons more clearly. Colors, symbols, or icons can effectively emphasize risk severity and status, aiding quick comprehension for management. However, it's crucial to ensure that these visuals and stories align with the senior management audience's preferences and are both relevant and accurate. This approach not only makes the report engaging but also aids in persuading and guiding decision-makers toward understanding and addressing potential risks effectively.

Story telling has and will always be one of the strongest influences! Build and make stories that work and are relevant! Remember, you can never be the ‘hero’ in the story, if you are then in might just come across as vanity. Make others the cynosure of storytelling and see the effectiveness.

Visual, analogies, and stories are great to share the impact of risks on business requirements. One of the ways I use this is through red, yellow and green indicators on my risk management plan. This provides a quick way to determine what is in danger (red), what is at risk (yellow) and what is good to go (green). This is a simple yet effective system to showcase risks. Another way is to use interactive dashboards that leadership can view project data, risks, plans of action, etc. This type of dashboard provides a robust and detailed way to communicate information by allowing them to drill down on specific areas of concern to get a deeper understand of the risk and the strategies to TAME them.

Our brains are wired for stories. When we hear a story, different parts of the brain light up: the amygdala (emotion); Wernicke's Area (language processing); the pre-frontal cortex (memory). Stories are memorable, and when we remember a story, we are more likely to remember the point behind the story. As for visuals, keep them simple and clean. Do not clutter your slides! People will get lost. Instead, keep the slides minimal and prepare a detailed handout with all the information you want.

Sharing stories of how a risk could impact the organization is one of the most effective ways to get people to internalize risk. Neuroscience tells us that we learn best through storytelling. It takes a bit more effort upfront, but it prevents future disasters from happening.

An important reason for visuals is because most communications with senior leadership should be as brief as is reasonable, particularly if your scope of responsibility is only a fraction of their total scope of responsibility. The attention of senior leadership is a resource that can be more efficiently utilized by use of visuals.

Visual and stories driven by accurate data are useful decision making tools for senior management. If, however, the data used for visual and stories, are inaccurate, the visual and stories will be wrong. The consequences could be bad decisions made by senior manager, with huge implications for project.

Visual and stories get to the timelines. However, do not spend long time story telling. Be factual and ensure to point out correct timelines. This makes it easier for the management team to decide on what issue to address first and priorities accordingly. Best is to try and find if there are any CCTV footages which can capture the incident so that all around can process the information simultaneously. it is very seldom to miss out any information when in a group rather than word of mouth.

In my experience this is what makes someone seen as a credible and effective project or task leader. The ability to follow up is crucial especially in documenting and evaluating efforts around risk management. This is how you get better. Conducting post analysis and reporting your finding and actions will help clarify areas for improvement. 90% of the job is communicating information about the project or task to leadership and having extremely clarity in your key points, decisions, and actions. You have to make sure that this is done timely and in accordance to the communication preferences of your stakeholders. Make sure to maintain thorough documentation and records from the beginning. This wil lsave you headaches down the line!

Follow up and follow through is a forward thinking strategy to ease the minds of senior leaders that you’ve got things moving in the right direction and are the expert in the right position to get the right results. Keep senior leaders informed either in brief updates along the way or set follow up date expectations so they know status updates will be coming. Then follow through on your commitments displaying results.

Every one is or should be accountable for resolution and solution implementation. Do not let senior leaders skate on this.. their experience and insight will help teach and mentor.

Reporting risks unfortunately is not done often enough and many do not follow up consistently or often. The benefits of the follow up are perhaps the most critical aspect. It serves as a way to seek clarification on what was reported, to keep leadership fully apprised of all future developments as they arise, and to qualify and further explain the risk reported. Often the practical applications of the risk reported come to life later and yet leadership is not made aware due to insufficient follow up. Like anything from sales, marketing to operations, follow up is the differentiator separating the pack.

It is super important to make your team feel heard and seen. If something is brought up, even if the decision is not great or there is yet to be a decision, check in on them and let them know what is going on. Even if it is still being processed or addressed, nothing is worse than bringing an issue up and then hearing nothing about it. Respect and loyalty can disappear quickly if the team does not feel valued, heard, or seen.

Also listen to how people respond. This may change over time, but how your audience responds to the risk tells you a lot - including whether this is the right place to work! Sometimes you may find your analysis is different from others and you can learn many things from this!

In my experience, it’s not enough to just submit the report and move on. Regular follow-ups with your boss or senior management show your commitment to the issue and keep it on their radar. This can be as simple as a brief email update or a quick check-in during meetings. Equally important is following through on any solutions or actions proposed in your report. Take the initiative to lead or participate in implementing these solutions, demonstrating your reliability and investment in the company’s wellbeing. This approach not only reinforces the seriousness of the risk presented but also establishes your reputation as a dependable and proactive team member.

Risk Reporting: Follow-Up with the 'Jesus Effect' Express Gratitude: Thank management for their support, reflecting Jesus' attitude of gratitude. Document and Share: Ensure the risk report and key decisions are well-documented and shared. Clarify Expectations: Confirm expectations and responsibilities, mirroring Jesus' clarity in communication. Monitor Progress: Regularly report on the progress and outcomes of the risk management plan. Keep Management Informed: Update senior management on any changes or issues, fostering transparency. Build Trust: Consistent follow-up builds trust and collaboration, akin to Jesus' relationship with His disciples.

En mi experiencia el seguimiento es clave para alcanzar el objetivo. Vivimos en un mundo multitask con varias “distracciones “ y obligaciones diarias, por lo cual el seguimiento puede pasar a segundo plano, cuando sin esto no llegarás al objetivo o meta. Seguimiento es disciplina y con disciplina se puede llegar a grandes éxitos

In my experience, The most effective way to report risks to senior management involves clear and concise communication. Provide a brief overview of the risk, emphasizing its potential impact on key objectives or projects. Use data and relevant metrics to support your assessment. Offer potential solutions or mitigation strategies, and be sure to highlight the potential benefits of addressing the risk proactively. Use a format that suits the audience. Keep the language simple and focus on actionable insights, making it easy for senior management to grasp the essence of the risk and make informed decisions. Regular updates on the status of identified risks can also help in maintaining a proactive risk management approach.

Don’t just report risks, tell stories of what will happen if those risks are not mitigated & responded to! For many risk management & reporting tends to be drab, mundane. It gets done as a sedentary process & mandatory reporting; as per internal governance, reporting mechanisms. Thus, it doesn’t catch attention of top management. Therefore, sensationalisation of risks becomes important. Am not suggesting that we quote them out of context. They need to be communicated in a manner like - what will be the cost of not doing it, what are the consequences, what will the stakeholders say, how will employees perceive it!! If possible quote examples of other companies & what they had to go through in absence of robust risk redressal mechanisms!!

As leaders, it is important to own the situation and the outcome. It is uncomfortable to give the bad news but it is important for the organization. If we own the situation and drive the outcome, it not only helps earn trust from the senior leaders but at times helps remove the blockers.

Most important when reporting risk is timing, candor, and readiness. Timing - Report risk as early as you can so that mitigation measures or a solution can be put in place. Candor - Be transparent, precise, and concise. Use data and examples where needed. Readiness - Come with a recommendation and an action plan, and be prepared to talk about options and contingencies. Risk can pop up anywhere. Leaders need teams that proactively plan, recognize, and mitigate it.

Risk management in any organization is about the ability to identify, report, analyze, rate/classify, respond & mitigate. Everyone must understand corporate and personal responsibility to contribute to this process. This can only be achieved by education, whereby everyone (including employees & partners) play a pro-active role. There should be incentives (need not be financial) attached to everyone playing a part. In most industries risk reporting is even part of the regulatory framework too. Most important things: 1. Creation of robust risk management process 2. Education/awareness 3. Incentivization (and reverse if necessary, though not encouraged)

One very important factor to consider when delivering your report on risk is the timeliness of the information you are presenting. It is akin to a timely weather forecast guiding sailors through unpredictable seas. In the dynamic landscape of business, delays in presenting risk assessments could be analogous to missing the warning signs of an approaching storm. Prompt delivery not only empowers decision-makers with real-time insights but also enables them to navigate potential challenges with agility. Just as a navigator relies on up-to-the-minute weather information, stakeholders depend on timely risk reports to make informed choices, mitigate threats, and steer the organization toward calmer waters.

Start by looking inward. All the suggestions and recommendations in the previous segments are useful, but where do YOU stand on this? Rather than be a “player” and present what leadership may want to hear, state your personal opinion. Be an independent thinker who puts forward considerations and perspectives around risk that may provide fresh solutions. Or, more importantly, ones that are contrarian. Too often we play up to leadership to garner favor and privilege when we should be independent thinkers who are providing new perspective. It’s important to “risk” dealing with risk with independent thinking.

As a leader, it is important to be honest and be able to deliver news that may not be good. We are hired for our skill and expertise for a reason. Being clear about the facts and offering alternatives to correct and issue is important.