You're managing a complex program with stakeholders. How do you communicate risks without sparking panic?

Collective engagement with stakeholders in identification of risks and appropriate mitigation strategies should be seen as a critical exercise for success rather than something that can create panic. It is always better to identify risks and work on mitigation rather than face issues at a later stage.

Tailor the message to the audience, focusing on transparency and proactivity. Show stakeholders that you are actively working on mitigation strategies. Frame the message positively, explaining how addressing the risk can lead to a stronger program or new opportunities. Emphasize that everyone is in this together.

You must establish trust with your stakeholder and acknowledge their concerns and emotions. Listen with empathy and understanding of their perspective. Also, be transparent with both positive and negative impacts. Transparency builds credibility and fosters informed decision making.

Be transparent about the risks while maintaining a balanced perspective. In one of my projects, we faced significant technical challenges. I made sure to communicate the risks clearly, explaining their potential impact but also emphasizing our mitigation plans. Being honest about the situation builds trust and credibility.

Stakeholders tend to be supervisors, peers, subordinates, customers and suppliers. You can note the contacts in each group and develop an understanding of their personal risk tolerance. As a rule of thumb, those who have known you longest tend to have more risk tolerance than those who are new to you. Each type of stakeholder will view risk differently, so try to learn what it is. For example, a supplier with cash flow issues will worry about delays more than a supplier with strong balance sheets. Try to understand the milestones important to the stakeholder. Focus on communication related to those actions moving you towards that stakeholders needs. If you are consistent then more bad news or more risk will be tolerated.

Customize your communication to suit the audience. I’ve learned that different stakeholders have varying levels of understanding and concerns. For example, I presented detailed technical risks to the project team, while summarizing the key points and their business impact for senior executives. Tailoring the message ensures that it is both understood and appropriately addressed.

Tailored Messaging for Risk Communication: 1) Understand Your Audience: Tailor your message to stakeholder concerns and expertise. 2) Be Transparent Yet Reassuring: Clearly outline risks while emphasizing mitigation measures. 3) Provide Context: Explain risks within the overall project scope. 4) Highlight Mitigation Plans: Detail proactive measures being taken to manage risks. 5) Use Data and Visuals: Support your message with data and visuals for clarity. 6) Encourage Dialogue: Foster an open channel for questions and feedback.

Regular updates can help build trust. I usually like to provide a Bottom Line Up Front (BLUF) format along with a graphical dashboard (I'm leveraging Monday that makes these dashboards easy to build). The message focuses on the wins in the program, the over size and progress and the areas of attention( projects in the program that are amber or red). Each of these elements is important. Think how seeing two red projects could be worrying but how that changes tone when you see the other 35 are on track and another 10 are completed.

Provide regular updates to keep stakeholders informed and engaged. During a particularly complex program, I scheduled weekly status meetings and sent out regular email updates. This consistent communication helped stakeholders stay aware of the risks and the steps we were taking to manage them, preventing surprises and reducing anxiety.

When sharing identified risks, it is advisable to also provide the associated action plan. Doing so not only prevents stakeholders from panicking but also increases their engagement and appetite to discuss these risks. Additionally, it’s helpful to start by addressing the closed negative risks from previous risk analysis meetings. This demonstrates that implemented action plans are effective in reducing or eliminating negative risk impacts when stakeholders fulfill their roles. In conclusion, regular risk meetings create a better understanding of project or program risks and contribute to a more proactive risk management environment.

Empower stakeholders by focusing on actionable steps. When discussing risks, I always highlight the actions we are taking to mitigate them and what stakeholders can do to support these efforts. For example, when facing a potential delay, I detailed our contingency plans and requested specific support from key stakeholders. This approach shifts the focus from the problem to the solution.

Frame the communication in a positive light where possible. While it’s important to be realistic, I try to highlight the proactive measures we are taking and any progress we’ve made. In one instance, I communicated a risk related to resource constraints by emphasizing our successful reallocation of resources and the positive impact it was having on the project. Positive framing helps maintain morale and stakeholder confidence.

By using positive framing, you can communicate risks effectively, keeping stakeholders informed and motivated without causing unnecessary concern. Steps according to my experience: 1) Understand Your Audience: Tailor messages to stakeholder concerns and expertise. 2) Be Transparent Yet Optimistic: Outline risks clearly, emphasizing opportunities and solutions. 3) Provide Context: Frame risks within the broader project scope, highlighting positive impacts. 4) Highlight Mitigation Plans: Focus on proactive measures and potential benefits. 5) Use Data and Visuals: Support messages with data and visuals to reinforce positive outcomes. 6) Encourage Dialogue: Create open channels for feedback, fostering collaboration and trust.

It is vitally important to frame risks with a continuous learning focus. What have your programs and projects learned from in the past, or are you learning right now that will reduce the impact of the risk? Software quality has a similar goal, in that it aims to continuously discover problems before they occur.

Having a plan is inherently calming, so be sure to quantify the confidence intervals of your predictions, and “If, when, then” statements that qualify branching scenarios, and what the opportunities might mean for continuation of excellence.

Foster strong relationships with stakeholders through regular, open communication. When stakeholders trust you, they are more likely to respond calmly to risk communications.