Storytelling and the Grim Reaper

In the world of risk management, no one likes to be the bearer of bad news. And that’s a challenge, because when you’re dealing with risks, you’re often delivering uncomfortable truths about potential weaknesses, inefficiencies, or losses in the business. From my experience the use of storytelling, metaphors and analogies is a key tool for risk professionals that can be the difference between success and failure.

Let me share a personal experience.

At one board meeting, I presented the fact that the company had a very high leakage level. The response? “Isn’t that the industry average?” It was uncomfortable to watch. They weren’t grasping the real cost of that level of leakage, so the next time we met, I used a different approach.

I positioned the leakage in terms of a fictitious operational company (opco), explaining that if the leakage represented the EBITDA of a business unit, it would be the fourth-most profitable company in the entire group. Suddenly, a director new to the business leaned forward, and with a piercing analogy, he said, “So what you’re telling us is that if we were a motor company, we would be destroying one in every twenty cars we produce.” The room went quiet. The message had landed.

The Science Behind Storytelling

Why did the analogy work so well? The answer lies in how our brains process information. Research shows that when we hear a story, particularly one with vivid imagery or relatable metaphors, we’re able to connect with it emotionally. Data by itself, while important, is processed in a more analytical part of our brain, often detached from emotion. But stories? They engage multiple areas of the brain simultaneously—emotion, memory, even decision-making.

In risk management, getting your audience to understand the severity of a situation often requires bridging that gap between logic and emotion. Storytelling does just that. It turns cold, hard numbers into something tangible and, most importantly, actionable.

Creating Emotional Connection with Analogies

Think about the analogy my colleague used. When you describe a business problem as destroying one in every twenty cars, it’s no longer just a percentage on a spreadsheet—it’s a visceral image. The destruction of something valuable. That’s the power of a strong analogy. It shifts the discussion from “how do we compare to the industry average?” to “this is costing us, and it’s serious.”

The analogy turns an abstract concept into a reality that everyone in the room can visualize and understand. It moves the conversation from passive acceptance of “standard” risks to an active drive for change.

How Storytelling Creates Safe Space for Bad News

One of the toughest aspects of risk management is delivering bad news without being met with resistance. People don’t like to be told that their processes, their decisions, or their operations are leaking money or creating vulnerabilities. It feels like a personal attack.

Storytelling, however, creates a safe space to explore these uncomfortable truths. By positioning the message through analogy, the focus shifts from personal accountability to the broader business context. You’re no longer accusing the team of failure; instead, you’re opening their eyes to a problem they may not have fully grasped. In my case, it wasn’t about shaming the company for 10% leakage. It was about helping them see the size of the problem in a way that couldn’t be ignored.

Analogies: The Bridge from Data to Action

The best stories don’t just inform; they inspire action. In risk management, data points are vital, but they won’t drive change on their own. It’s the story behind the data—the analogy that brings the situation to life—that pushes people from analysis to decision-making.

When the director said, “If we were a motor company, we’d be destroying one in every twenty cars,” the risk wasn’t just a number anymore. It was a problem with a clear, dramatic consequence. That moment changed the conversation from passive to urgent. It wasn’t about accepting a level of leakage because it might be the industry standard. It was about realizing that we were throwing away valuable resources, and it couldn’t continue.

Turning Risk Into a Call to Action

At the end of the day, your role in risk management isn’t just to deliver bad news. It’s to provide a pathway forward, to show that even the most uncomfortable truths can lead to better outcomes. Storytelling, and specifically analogies, are your greatest allies in this effort.

The next time you find yourself in front of a board or a leadership team, don’t just present the data. Turn it into a story they can feel and relate to. Show them, through metaphor and analogy, what that risk really means. In doing so, you’ll not only help them understand—you’ll motivate them to act.