You're facing stakeholders downplaying risk severity. How can you make them see the bigger picture?

To effectively communicate risks, it's essential to present a comprehensive picture through quantifying their impact, sharing real-world examples, scenario planning, risk transfer and insurance, building trust and credibility, involving stakeholders, and adopting a collaborative approach. Quantifying the impact involves presenting financial implications, time-related consequences, and potential damage to the company's reputation. Real-world examples can be shared through industry or internal case studies. A collaborative approach actively listens to stakeholders' concerns and offers informed decision-making options.

To make stakeholders understand the severity of risks, educate them thoroughly with comprehensive information, present data to illustrate potential impacts, engage emotionally by highlighting consequences, offer practical solutions, build consensus through collaboration, and follow up to ensure ongoing engagement. By following these steps, stakeholders can see the bigger picture and take necessary actions to effectively manage risks.

Majority of the stakeholders don’t have adequate and accurate information while analyzing risks. Hence they would always downplay the risk impact / likelihood or both. It is always helpful to share relevant information (coming from the same sector and geographic region) to provide them a holistic view of the risks. With the complete information they would be better equipped to improve the risk prioritizations. The information should be based on facts as much as possible.

Presenting data is always a helpful way to get your point across. More often than not, it is possible to gather historical data from the first line of defence (business units) that will enable the generation of clear visuals and conclusions. In addition, if Key Risk Indicators are consistently monitored, they can also help produce graphs and charts along with meaningful conclusions and trends that can convey the severity of risks.

When faced with stakeholders who are downplaying risk severity: 1. Present data-driven evidence: Share facts, statistics, and expert opinions to illustrate the risk's potential impact. 2. Explain the risk in business terms: Connect the risk to the organization's goals, objectives, and bottom line. 3. Use visual aids: Illustrate the risk's potential consequences using diagrams, flowcharts, or scenarios. 4. Highlight potential consequences: Emphasize the potential harm to reputation, finances, or operations. 5. Involve independent experts: Bring in external experts to provide objective assessments and validate your concerns. 6. Conduct a risk assessment workshop: Engage stakeholders in a collaborative risk assessment process.

To create a risk culture where you expectations is from all to contribute in driving risk strategies, we need to have a consensus on the table from all key stakeholders, our submission should include both qualitative and quantitative views where qualitative covers evolving risk landscape, emerging technologies and quantitative includes data, past incidents or existing gaps. As said before, risk partners need to come across as trusted advisors who safeguard the firm interest with clear focus on customer outcome

In addition to the above , I would reemphasise on two key aspects 1. Data analytics to understand the impact of the issue so that the stakeholders see merit in the situation to be addressed. Severity always needs to be looked at with a practical lens.Hence it's important to corroborate data with the risk. 2. If possible, share case studies if the said risk may have fructified into an event in the past causing huge impact 3. Last but not the least make it a 2 way street. The key is not in winning the debate to keep the risk at high severity but agreeing with the management on the risk existence and then according resources to address the same if needed

To make stakeholders see the bigger picture of downplayed risks, I suggest to quantify the impact with data and financial metrics. Use real-life examples and scenario planning to show potential outcomes. Connect risks to business objectives and engage in open dialogue to address concerns. Bring in third-party opinions for added credibility and highlight long-term consequences. Demonstrate how risks might trigger or worsen other issues. These approaches can help stakeholders understand the full scope and importance.