How can you communicate risks to all levels of management in your organization?
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As a facility manager, you are responsible for identifying, assessing, and managing the risks that affect your organization's assets, operations, and reputation. But how do you communicate those risks effectively to all levels of management, from senior executives to frontline supervisors? Here are some tips to help you develop a risk communication and reporting strategy that aligns with your organization's goals, culture, and expectations.
In order to effectively communicate risks, it is important to understand who you are communicating with, what they need to know, and how they prefer to receive information. Different levels of management may require different levels of detail, frequency, and format of communication. For example, senior executives may need a high-level overview of the most critical risks and their impact on the organization's strategic objectives, while frontline supervisors may need more actionable information on how to prevent or mitigate risks in their daily operations. When tailoring your communication to your audience, consider questions such as: their goals and expectations for risk management; their main concerns and challenges; their preferred channels and methods of communication; how often they would like to receive updates and feedback; and how they like to process and visualize information.
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Dakshinamurti Chirravuri
Risk Leader
Some ways that always work are, - Ensure the Risk descriptor is written clearly & includes, cause, likelihood, impact. - Engage each level based on their engagement in managing risk. - Ensure the leadership celebrates key risk milestones - Develop a culture of transparency & holding each other accountable for managing risks.
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AHMAD SHUKRI ABD RAHMAN, CPIF
CHIEF RISK OFFICER at BANK RAKYAT
One thing I found useful to communicate risks is embedding the risk mitigations strategies into the annual business plan. During the business plan discourse, inherent risks and potential/emerging one will be comunicated and comprehend. Business Plan incorporating the risk strategy will enable risks are communicated throughout the organization more comprehensively.
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The second step in communicating risks is to use a common language that is clear, consistent, and understandable for all levels of management. Risk communication can be challenging if different stakeholders use different terms, definitions, or metrics to describe or measure risks. To avoid confusion and misunderstanding, you should establish a common risk language that defines the key concepts, categories, and indicators of risk, and that aligns with your organization's risk management framework and standards. You should also avoid using jargon, acronyms, or technical terms that may not be familiar or relevant to your audience, and explain any assumptions or limitations that may affect your risk analysis or reporting.
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Dhatri Kakkar, FMVA®,CBCA™
Associate, Business Manager at BlackRock
- Send escalation emails to the relevant stakeholders - Keep meetings with legal teams and relevant stakeholders to communicate risks and find potential solutions -Figure out the impact, short-term solution, and long-term solutions/implementation of op model to avoid any repetition of such risks - Ensure that the same is raised and socialized in the right platforms and committees and is getting monitored and tracked
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Muhammad Saleem Zahid
Chartered Accountant | Region Head Audit | Risk Assessor | Internal Control System Evaluator | Process Innovation and Improvements | Build Leadership Skills | Financial Analyst | Focused Approach on Compliance
Most probably you can compare the risk and methodologies used by your competitors by analysing their way of communicating and managing the risk.
The third step in communicating risks is to provide context and value for your audience. You should explain why the risks matter, how they affect the organization's performance and objectives, and what actions or decisions are needed or recommended. Risk communication should not be a one-way transmission of data or information, but a two-way dialogue that engages and influences your audience, showing them the value of risk management for the organization. To do this, consider questions such as: what are the sources, causes, and consequences of the risks? How do they relate to the organization's mission, vision, and values? How do they compare to the organization's risk appetite and tolerance? What opportunities or benefits come with managing them? And what best practices or lessons have been learned from managing them?
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Rossana Sgamba
Function Head - Markets (Sales and Trading), In-Business Quality Assurance
Understand what the current controls for such risks are, how the risks are currently measured, managed and mitigated as the case may be and how these controls can be strengthened. Or suggest what these controls and measures should or could be.
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Niclas Celvin
Chief Risk Officer | Risk Management | Model development
Connecting a risk to how much the company can lose, preferably euros and cents is really powerful. It also shows that you actually know what you are stating.
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The fourth step in communicating risks is to be transparent and honest with your audience, by sharing both the positive and negative aspects of the risks, and by acknowledging any uncertainties or gaps in your risk information or analysis. Risk communication should not be used to conceal or diminish the risks, or to manipulate or persuade your audience, but instead should be used to build trust and credibility, and to foster a culture of risk awareness and accountability. To ensure transparency and honesty, consider questions such as: what are the strengths and weaknesses of your risk information or analysis? Are there any assumptions or uncertainties that may affect your risk information or analysis? How confident are you in your risk information or analysis? How do you monitor and review it? And how do you communicate any changes or errors in your risk information or analysis?
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ibiyinka okeowo
Chief Risk Officer @ Oxygen (a Subsidiary of the Access Corporation)
One thing i have found helpful is to ensure top leadership in actively communicates and reinforces the importance of risk management. When executives prioritize and communicate about risks, it sets the tone for the entire organization Also, leveraging on technology, such as risk management software, to streamline the communication process works. Automated alerts and notifications .g. impending breaches, can keep management and stakeholders informed in real-time.
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Patricio Roffo
Head of Compliance & Risk @ TIER Mobility | Advisory Board Member | ex-Microsoft
Given that risk management is all about communication (having difficult conversations, asking smart questions), transparency is probably the key in being succesfull. A risk management function should aim for the risk owners and the organization to be: 1) comfortable with the uncomfortable; and 2) held stakeholders accountable.
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The fifth step in communicating risks is to seek feedback and improvement from your audience by asking for input, opinions, and suggestions, and incorporating their feedback into your risk communication and reporting process. Risk communication should be a continuous and dynamic activity that adapts to the changing needs of your audience while improving the quality and effectiveness of risk management. To ensure this happens, you should measure and evaluate the impact of your risk communication and reporting, collect and analyze feedback from your audience, respond to the feedback, update and revise your risk communication strategy and plan, and communicate the improvements and achievements of your risk communication and reporting.
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M. Hugues Paterne OUSSOU
Actuaire conseils/ Public Procurement Operations and Market
1.Utiliser un langage clair et accessible : Évitez le jargon technique excessif et utilisez un langage clair et simple. 2. Utiliser des visualisations : 3. Adapter le message au public cible : Personnalisez votre communication en fonction du public. 4.Intégrer les risques dans les rapports réguliers : 5.Organiser des sessions de formation : 6. Créer des rapports de synthèse. 7.Encourager la communication bidirectionnelle. 8.Intégrer les risques dans la culture organisationnelle. 9.Utiliser des exemples concrets.
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Rebekah Stephens
Diploma in Workplace Health & Safety at Southern Institute of Technology
This can also be done by: - creating multiple avenues for worker/manager communication - sharing learnings from incident investigations - implementing worker feedback and telling them how their feedback made a difference - create ways to acknowledge, celebrate and reward workers who do step up and report things
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Kevin Gomez, CFE
Financial Crime Compliance Professional driving Group AML activities and exploring futuristic avenues (Views are personal)
I would recommend a concise and effective approach to communicate risks to all levels of management in your organization. a) Start by preparing a clear and comprehensive risk report that highlights the potential risks, their causes, and their potential impact on the organization. b) Utilize visual aids such as charts or graphs to present data in an easily understandable manner. c) Use simple and straightforward language to explain the risks and their significance. d) Tailor your communication style to suit the specific needs of each management level, focusing on the key points relevant to their roles and responsibilities. e) Encourage active engagement and feedback from management to ensure a shared understanding of the risks.
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Muzingwa Ngulube
Risk, Compliance and Business strategy
The power of routine is a definite winner.It consolidates a culture over time that people have as a dna .Over time, results are driven by routine and the work is around "why we do what we do". This is effective for the operational layer
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