Change is inevitable, but it also brings uncertainty and risk. How can you collaborate with other departments in risk management to ensure a smooth and successful change process? In this article, you will learn some practical tips and best practices to work with your cross-functional teams and stakeholders in identifying, assessing, and mitigating change risks.
The first step in collaborating with other departments in risk management is to clearly define the scope and objectives of the change. What are you trying to achieve, why, and how? What are the expected benefits, costs, and impacts of the change? Who are the key sponsors, owners, and influencers of the change? By answering these questions, you can establish a common understanding and alignment among the different parties involved in the change, and identify the main sources and types of risk that may arise.
For my professional experience, I think the hardest part of risk management is aligning actual risks with objectives your trying to achieve. This is especially true with large organizations that are trying to start a new risk management program. Aligning everything and getting everyone on board is the hardest part and is currently my biggest challenge
The next step is to engage and communicate with stakeholders throughout the change process. Stakeholders are anyone who can affect or be affected by the change, such as customers, employees, suppliers, regulators, competitors, etc. You need to identify who they are, what their interests, needs, and expectations are, and how they may react to the change. You also need to communicate with them regularly, provide them with relevant information, listen to their feedback, and address their concerns. By doing so, you can build trust, rapport, and commitment among the stakeholders, and reduce the risk of resistance, confusion, or conflict.
As per my experience ,lack or poor communication across team members / Stakeholders ,can lead to key details being overlooked, frustration, and conflict and can hinder the team’s ability to work together and achieve their goals.
As I said above, getting everyone on board and getting the to perform not only their daily duties but to take on this new additional task of risk management is challenging. As the risk manager, establishing rapport and meetings can certain help my cause. this can create collaboration and develop relationships with key members.
The third step is to conduct a risk assessment with the input and participation of other departments. A risk assessment is a systematic process of identifying, analyzing, and evaluating the potential risks that may affect the change. You can use various tools and techniques, such as SWOT analysis, PESTLE analysis, risk matrix, etc., to help you with this step. The goal is to prioritize the most significant and likely risks, and determine their causes, consequences, and probabilities.
The fourth step is to develop a risk response plan with the collaboration and agreement of other departments. A risk response plan is a document that outlines the strategies and actions to deal with the identified risks. You can use four main types of risk responses: avoid, reduce, transfer, or accept. For each risk, you need to assign a responsible person or team, a target date, a budget, and a contingency plan. You also need to monitor and track the progress and effectiveness of the risk response plan, and make adjustments as needed.
Risk plans are crucial to having a set of standards and plans across the board for everyone to execute when the time comes. Applying the concepts of risk response are crucial to ensuring that the risks do not overextend their stay.
The final step is to learn and improve from the change experience and the risk management process. You can do this by conducting a post-change evaluation and a lessons learned session with other departments. You can review the outcomes and impacts of the change, the performance and satisfaction of the stakeholders, and the strengths and weaknesses of the risk management process. You can also identify the best practices, the challenges, and the opportunities for improvement. By doing so, you can enhance your skills, knowledge, and confidence in managing change and risk in the future.
One thing I've found helpful is to find the tools that work best for your organization and also make sure everyone is using them. This can ensure teams are on the same page when it comes to Risk assessment, mitigation and understanding where the main communication is occurring on a daily basis.