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How can you communicate risk to people outside of your department?

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How can you communicate risk to people outside of your department? Risk management is a vital skill for any project or organization, but it can be challenging to convey the importance, urgency, and impact of risk to stakeholders who may have different perspectives, priorities, and expectations. In this article, you will learn some practical tips on how to communicate risk effectively to people outside of your department, such as clients, executives, partners, or regulators.

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1 Know your audience

The first step to communicate risk is to understand your audience and tailor your message accordingly. Different audiences may have different levels of risk awareness, tolerance, and appetite, as well as different interests, goals, and concerns. Therefore, you need to consider what they need to know, what they want to know, and what they expect from you. For example, a client may be more interested in the impact of risk on the project deliverables, budget, and timeline, while an executive may be more interested in the impact of risk on the strategic objectives, reputation, and value of the organization.

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2 Use clear and simple language

The second step to communicate risk is to use clear and simple language that avoids jargon, acronyms, and technical terms. Risk management can be a complex and nuanced subject, but you need to make sure that your message is easy to understand and digest for your audience. You can use analogies, examples, or stories to illustrate your points and make them more relatable. You can also use visuals, such as charts, graphs, or diagrams, to show the probability, severity, and interrelation of risks. However, you should avoid using too many numbers, details, or assumptions that may confuse or overwhelm your audience.

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Alessio P.

Expert Head of Risk in Global Commodity Markets | Advocate for Risk Excellence & Sustainable Energy | 20+ Yrs International Experience | Top LinkedIn Risk Management Voice
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In my role, effectively communicating with non-risk departments involves demystifying risk language. I strive to explain complex risk concepts in simpler terms and use practical examples. Holding joint sessions for shared understanding and encouraging open dialogue ensures we’re on the same page. This approach not only clarifies our objectives but also builds stronger interdepartmental relationships, crucial for our organization’s success.

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Shamma Alzarooni

Advisor at ADNOC Group
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In my career, I've learned that clear communication is key in risk management. When explaining risks to those outside my department, I avoid jargon and technicalities. Instead, I use simple language, analogies, and relatable stories, making complex concepts more accessible.

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3 Focus on the key messages

The third step to communicate risk is to focus on the key messages that you want your audience to remember and act on. You should not try to cover every possible risk or scenario, but rather highlight the most significant, relevant, and urgent risks that require attention or action. You should also emphasize the benefits and opportunities of managing risk effectively, rather than only the costs and threats of ignoring or avoiding risk. You should also provide clear and concise recommendations or solutions for mitigating or reducing risk, as well as the expected outcomes and impacts of doing so.

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Shamma Alzarooni

Advisor at ADNOC Group
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I focus on highlighting the most pressing risks and underscore the benefits of addressing them. It's crucial to present a balanced view, emphasizing not just the dangers but also the opportunities in effective risk management. Clarity in recommendations and expected outcomes helps in garnering support and action from those outside the department.

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4 Be honest and transparent

The fourth step to communicate risk is to be honest and transparent about the level, nature, and source of risk, as well as the limitations and uncertainties of your risk assessment and analysis. You should not exaggerate or downplay the risk, but rather present it objectively and realistically. You should also acknowledge the assumptions, biases, and gaps that may affect your risk evaluation and communication. You should also be open and responsive to feedback, questions, or concerns from your audience, and address them respectfully and constructively.

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Alessio P.

Expert Head of Risk in Global Commodity Markets | Advocate for Risk Excellence & Sustainable Energy | 20+ Yrs International Experience | Top LinkedIn Risk Management Voice
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In my interactions with departments outside risk, honesty and clarity are paramount. Being transparent about risks and straightforward in my explanations builds trust and fosters collaboration. This approach ensures everyone understands potential impacts and contributes to informed decision-making.

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5 Build trust and rapport

The fifth step to communicate risk is to build trust and rapport with your audience, and establish yourself as a credible and reliable source of information and advice. You can do this by demonstrating your expertise, experience, and qualifications in risk management, as well as your understanding of the context, objectives, and expectations of your audience. You can also show your empathy, respect, and appreciation for your audience, and acknowledge their perspectives, values, and contributions. You can also use positive and respectful language, tone, and body language, and avoid being defensive, aggressive, or dismissive.

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Shamma Alzarooni

Advisor at ADNOC Group
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In my career, I've learned the importance of presenting risks objectively, without exaggeration or understatement. It's crucial to acknowledge the limitations and uncertainties in risk assessments, including any assumptions or biases. Being open to feedback and addressing questions constructively is crucial.

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6 Follow up and follow through

The sixth and final step to communicate risk is to follow up and follow through on your risk communication and management. You should not assume that your audience has understood, accepted, or acted on your message, but rather confirm and verify their comprehension, agreement, and commitment. You should also provide regular updates, reports, or feedback on the status, progress, and results of your risk management actions and outcomes. You should also seek and incorporate feedback, suggestions, or input from your audience on how to improve your risk communication and management. You should also celebrate and acknowledge the successes and achievements of your risk management efforts and outcomes.

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7 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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How can you communicate risk to people outside of your department?

1

2

3

4

5

6

7

1 Know your audience

2 Use clear and simple language

3 Focus on the key messages

4 Be honest and transparent

5 Build trust and rapport

6 Follow up and follow through

7 Here’s what else to consider

Risk Management

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How can you communicate risk to people outside of your department?

1

2

3

4

5

6

7

1 Know your audience

2 Use clear and simple language

3 Focus on the key messages

4 Be honest and transparent

5 Build trust and rapport

6 Follow up and follow through

7 Here’s what else to consider

Risk Management

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