Your boss challenges your risk analysis. How do you defend your strategic decisions?

When your boss challenges your risk analysis, start by fully understanding their concerns. Listen actively and ask clarifying questions to address specific doubts. Acknowledge that risk analysis isn’t an exact science but is based on the best data and judgment. By considering their viewpoint, you can effectively respond and demonstrate that multiple perspectives have been accounted for in your analysis.

Creo que previo (o en conjunto) a comenzar a analizar riesgos y dar entregables, es vital trabajar y medir la cultura de riesgos en la organización, que tanto esta ha permeado, cuanto las personas saben de riesgos, esto nos permitirá o facilitará transmitir de buena manera los resultados, como bien se menciona no es una ciencia exacta pero bien aplicada, con metodología clara, bien difundida y alineada a los objetivos estratégicos, sirve para tomar mejores decisiones de negocio.

Be sure to lean on objective data. When assessing the risk, you should be able to tie this risk back to organizational priorities and risk tolerance. You should be able to demonstrate that the risk truly impacts value.

Présentez le cadre théorique ou la méthode générale que vous avez utilisée pour l’analyse des risques. Cela pourrait inclure des références à des standards reconnus, des modèles éprouvés, ou des best practices dans le domaine. Détaillez les sources de données que vous avez utilisées, pourquoi vous les avez choisies, et comment elles ont été collectées. Expliquez les critères ou les paramètres que vous avez utilisés pour évaluer les risques. Indiquez les hypothèses que vous avez faites et pourquoi elles sont raisonnables dans le contexte. En fin vous pouvez terminer en invitant votre patron à discuter des aspects de la méthodologie qui pourraient être améliorés ou adaptés en fonction de ses préoccupations.

- State the framework or model used (e.g., SWOT, PESTLE). - Summarize the key steps: risk identification, assessment, prioritization, and mitigation. - Explain the criteria and data sources used for evaluation. - Highlight specific tools or techniques employed. - Provide a brief rationale for choosing this method, emphasizing its thoroughness and reliability.

One thing i have found helpful is to give the boss a walkthrough of the methodology used ,highlighting the reasons why that particular methodology was used relating to the business processes.Make sure you also take the boss through on how the risks were identified,assessed and prioritized.All tools used and frameworks adopted should be clearly explained such that the effect to the organization is crystal.

Clearly explain the methodology we used to assess risks. If you followed a recognized framework like the ISO 31000 risk management standard or conducted a detailed risk assessment using tools like the Risk Matrix or FMEA, walk your boss through the process. This shows that the analysis is grounded in established practices and not just based on assumptions.

Rassemblez tous les documents, rapports, études, et données pertinentes que vous avez utilisés dans votre analyse. Assurez-vous que ces éléments sont organisés et facilement accessibles pour la présentation. Mettez en avant les données quantitatives ou qualitatives qui soutiennent vos conclusions. Utilisez des graphiques, des tableaux ou des visualisations pour rendre ces données plus compréhensibles.

Reflecting through my thousands of past mistakes over 30+year in risk management, the key constant challenge to risk manager is the presenting of evidences especially in SMART - in amount and/or time period and/or percentage to augment its credibility and accuracy for CEO and Directors to make an informed strategic decision. It is a constant and yet continuous challenge to risk manager since both risk and process owners are the Divisional directors and there is always an apparent knowledge and skill gaps between Divisional Directors and Risk Manager about the executing of the strategic plan. Hence, Risk manager must conduct deep dive into the details of both existing and new products to gather ample and credible evidences prior presenting.

It's important to share relevant data and insights to your boss from your analysis that demonstrates that your recommendations are not arbitrary. This data can include industry benchmarks, and expert opinions that validate your approach.

To present evidence effectively in your risk analysis: - Use data from credible sources like industry reports, academic studies, and historical records. - Show how the data supports your conclusions and aligns with industry standards. - Use charts, graphs, and tables to illustrate key points. - Provide case studies or examples where similar risks were managed successfully. - Cite sources clearly to enhance credibility and transparency.

It is important to be prepared to defend your strategic decisions and risk assessments. It is important to carefully record the decision-making process and conduct a comprehensive risk analysis. The presentation of the data should be in an objective manner, and it is necessary to anticipate any concerns or reservations that the manager may have.

From a risk management perspective I think the recommendation of any risk personnel is largely based on his or her own subjectivity. As an organisation what we can try to achieve is to quantify that approach as much as possible with risk analytics tools available in the market or in- house. The approach should be to move away from perception based risk assessment to formulated risk management and put measures in place which work as solutions like control over proceeds, partnership agreements etc. or other counterclaims to aid business and not pose a hindrance unless the firm can predict successfully that a contract would turn onerous quickly.

?Feedback Integration: Feedback integration is crucial in refining and enhancing your risk analysis. Actively seek feedback from your boss and other leadership members on your analysis and proposed strategies. This collaborative approach not only improves the robustness of your analysis but also ensures that diverse perspectives are considered. By demonstrating a willingness to adapt and refine your strategy based on constructive feedback, you build a stronger case for your recommendations and foster a culture of continuous improvement. ??This addition could be effectively placed as a new section between "Discuss Alternatives" and "Highlight Benefits."

From my numerous past mistakes in risk management over some 30+year, whenever the risk manager is being challenged by the CEO due to lack of credible and/or accuracy of the risk analysis, the risk manager must do 2 things as best practice: a) Admit the shortcomings, be humble, don't argue back, and request for time to conduct deep dive into the root causes of risks and/or spend more time to understand the nitty gritty of those new processes from the implementing of new products and services. b) Learn from the most junior staff handling the implementation of the various processes on new products and services to have a different risk lens before proposing alternatives to CEO and directors.

When defending your risk analysis, it’s key to discuss alternatives. Recognize that while you support your assessment, other strategies could also address the risks. Present the pros and cons of these alternatives and justify why your chosen strategy is the best fit. This approach not only shows confidence in your analysis but also an openness to different ideas, which can help reassure your boss.

To defend my strategic decisions in risk analysis, I would articulate that my approach is grounded in comprehensive data evaluation and scenario modeling, demonstrating how the chosen strategy effectively mitigates potential risks while aligning with organizational objectives; I would also present alternative strategies, each with a detailed risk assessment, cost-benefit analysis, and potential impact, to show that the selected approach is the most robust and aligned with our long-term goals, ultimately addressing any concerns with evidence-based reasoning and a clear understanding of the risk landscape.

When defending your risk analysis, highlight the benefits of your chosen strategy. Emphasize how it effectively addresses the identified risks and aligns with organizational goals. Show how it improves overall risk management, enhances operational efficiency, or contributes to strategic objectives. Demonstrating the positive impact of your strategy reinforces its value and helps justify your decisions.

From my past experiences of 30+year, the way that risk managers present their risk analysis must start with either showing the CEO and directors not only the benefits but also the pain points with detailed statistical evidences in SMART approach plus detailed explanation how these +ve or -ve impacts gravely the successful achievement of the strategic objectives especially the misalignment areas.

Link your strategic decisions to the company’s broader business goals. For example, if your risk analysis led to decisions that prioritize safety, explain how these decisions protect the company’s assets, reduce potential liabilities, and align with the company’s commitment to employee well-being. Emphasize the long-term value of preventing accidents, which can lead to financial savings and enhanced company reputation.

When defending your strategic decisions, it's important to highlight the concrete benefits your risk analysis brings. I like to focus on how my recommendations not only protect the organization’s assets and ensure compliance but also drive cost savings, improve decision-making, and create a competitive edge. By framing my contributions this way, I can help shift the conversation from justifying my choices to recognizing the real value they add.

L'analyse des risques est un outil d'aide à la décision. Vous pouvez rassurer dans un premier temps votre responsable sur le fait que la décision lui revient. Pour ce qui est des résultats de l'analyse des risques vous pouvez les présenter sous un angle positif. C'est-à-dire en quoi la ma?trise des points critiques que vous avez identifiés créer de la valeur pour l'organisme. Bien-sur un préalable est de bien justifier par des preuves la criticité des risques et le choix de la cotation.

Maintain confidence in your expertise and judgment. Remember, your boss’s challenge may be more about seeking reassurance or a deeper understanding than questioning your abilities. By clearly and confidently presenting your analysis and decisions, you demonstrate your knowledge and reliability. This confidence can help build trust and potentially transform a skeptical boss into a supportive ally.

While putting the points with facts and data is definitely important to support your risk analysis; but being open for new ideas and thoughts is equally important. As nothing is perfect, There is always some space for improvement.

Maintaining trust always depends on the legitimacy of the work carried out. That's why you should always provide the rationales behind your analysis, to show that they are well-founded and robust. As a reminder, it's normal for your risk analysis to be discussed and questioned; the problem arises when you don't have an answer to give.

Consider using the challenge as an opportunity to invite your boss into your thought process. By framing your response as a collaborative exploration, you can turn the conversation into a learning experience for both sides. This not only demonstrates your expertise but also builds a stronger rapport, showing that you're open to feedback while remaining confident in your professional judgment.

Final Thoughts: In situations where your boss remains unconvinced, it’s essential to remain calm and professional. Emphasize that your goal is to contribute to the organization's success and that you are open to further discussion or adjustments if new information comes to light. This approach not only defends your analysis but also demonstrates your commitment to continuous improvement and collaboration.