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What are the most common pitfalls in risk communication?

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Risk communication is the process of conveying relevant and timely information about potential hazards and uncertainties to the stakeholders involved in corporate real estate (CRE) projects. Effective risk communication can help build trust, reduce conflicts, and enhance decision-making among the parties. However, risk communication also involves many challenges and pitfalls that can undermine its goals and outcomes. In this article, we will discuss some of the most common pitfalls in risk communication and how to avoid them.

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1 Pitfall 1: Lack of clarity

One of the most common pitfalls in risk communication is the lack of clarity and consistency in the messages and the methods used to communicate them. Different stakeholders may have different perceptions, expectations, and preferences regarding the risk information they need and want to receive. Moreover, the risk information may be complex, uncertain, or dynamic, requiring careful explanation and interpretation. Therefore, it is essential to use clear, simple, and accurate language, avoid jargon and technical terms, and provide context and examples to illustrate the points. It is also important to align the communication channels, formats, and frequency with the needs and preferences of the stakeholders, and to ensure that the messages are consistent and coherent across different sources and platforms.

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Melanie Markowsky

Small Business Owner at Markowsky Limited Scope Legal Services Inc.
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In addition to providing legal services, legal professionals are to advise stakeholders of risk. Risk can be identified by thorough due diligence, being organized is the key. Stakeholders are busy, so using communication effectively, present the findings/risk in blocks rather than piecemeal. Stakeholders must decide if they want to proceed with the project or not knowing the risks/pitfalls they may encounter. After all, it’s the stakeholders money/investment that’s on the line. If you demonstrate an effective use of time, and are thorough and clear in your communication, you will be noticed.

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2 Pitfall 2: Lack of credibility

Another common pitfall in risk communication is the lack of credibility and trustworthiness of the communicator and the source of the information. Stakeholders may doubt the reliability, validity, or impartiality of the risk information, especially if it contradicts their prior beliefs, values, or interests. They may also question the motives, intentions, or competence of the communicator, especially if they perceive a conflict of interest, a hidden agenda, or a lack of expertise. Therefore, it is crucial to establish and maintain credibility and trust by providing transparent, honest, and balanced information, disclosing any uncertainties, limitations, or assumptions, acknowledging any errors or mistakes, and citing credible and reputable sources. It is also vital to demonstrate empathy, respect, and responsiveness to the concerns and feedback of the stakeholders, and to involve them in the risk communication process as much as possible.

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3 Pitfall 3: Lack of relevance

A third common pitfall in risk communication is the lack of relevance and usefulness of the risk information for the stakeholders. Stakeholders may not pay attention to, understand, or act on the risk information if it is not relevant to their needs, interests, or goals. They may also not find the risk information useful if it is too vague, general, or abstract, or if it does not provide any guidance or recommendations on how to deal with the risks. Therefore, it is important to tailor the risk information to the specific context, audience, and purpose of the communication. It is also important to provide actionable and practical information that helps the stakeholders to assess, manage, or mitigate the risks, and to highlight the benefits and incentives of doing so.

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4 Pitfall 4: Lack of dialogue

A fourth common pitfall in risk communication is the lack of dialogue and interaction between the communicator and the stakeholders. Risk communication is not a one-way transmission of information, but a two-way exchange of views, opinions, and perspectives. Stakeholders may have questions, doubts, or objections about the risk information, or they may have valuable insights, experiences, or suggestions to share. Therefore, it is essential to create and facilitate opportunities for dialogue and interaction, such as meetings, workshops, surveys, or forums, where the stakeholders can voice their concerns, ask questions, provide feedback, or offer input. It is also essential to listen actively, attentively, and respectfully to the stakeholders, and to address their issues, acknowledge their contributions, and incorporate their feedback into the risk communication process and outcomes.

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Deidre Reynolds Crockett

Executive Director | Operational Leadership | Communications | Real Estate | CCO | CAO | MBA
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Failing to disclose all known risks, particularly if they have a material impact, can erode trust and damage your reputation. Be transparent about risks, even if they are uncomfortable to voice. Early and often.

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5 Pitfall 5: Lack of evaluation

A fifth common pitfall in risk communication is the lack of evaluation and improvement of the risk communication process and outcomes. Risk communication is not a one-time event, but an ongoing and adaptive process that requires constant monitoring, assessment, and refinement. Stakeholders may change their perceptions, preferences, or behaviors regarding the risks over time, or new risks may emerge or evolve that require new or updated information. Therefore, it is important to evaluate and measure the effectiveness, efficiency, and impact of the risk communication process and outcomes, using appropriate indicators, criteria, and methods. It is also important to identify and address any gaps, challenges, or problems that may arise, and to seek and implement feedback, suggestions, or best practices to improve the risk communication process and outcomes.

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6 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?

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What are the most common pitfalls in risk communication?

1

2

3

4

5

6

1 Pitfall 1: Lack of clarity

2 Pitfall 2: Lack of credibility

3 Pitfall 3: Lack of relevance

4 Pitfall 4: Lack of dialogue

5 Pitfall 5: Lack of evaluation

6 Here’s what else to consider

Corporate Real Estate

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What are the most common pitfalls in risk communication?

1

2

3

4

5

6

1 Pitfall 1: Lack of clarity

2 Pitfall 2: Lack of credibility

3 Pitfall 3: Lack of relevance

4 Pitfall 4: Lack of dialogue

5 Pitfall 5: Lack of evaluation

6 Here’s what else to consider

Corporate Real Estate

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