NO COMPANY WANTS TO BE THE BEARER OF BAD NEWS BUT AN ORGANISATION’S STAKEHOLDERS, REGULATORS AND THE GENERAL PUBLIC NEED TO BE INFORMED OF PROBLEMS FACING THE BUSINESS.
As the Harvard Business Review says, risk communications “has become one of the most important challenges faced by anyone who needs to convey or consume information.”
One of the best examples of poor communication was Optus when it was hacked. As cabinet minister Tanya Plibersek said, Optus had failed to provide the government and the general public with information to keep people safe.
Risk communication is now increasingly important with the increasing number of cyberattacks on Australian small and medium businesses. Communication is an important risk management tool for them.
HERE ARE MY 5 TIPS TO COMMUNICATE RISK:
1. Understand stakeholders
To communicate effectively with stakeholders, I look at all of my client’s stakeholders. Who are they? What kind of information do they need? What is their role in the enterprise risk landscape? What kind of messaging about risk information do they need? How would they want to receive it?
2. Make it a team effort
I always make sure I get the information from all the relevant people in the company. I create a risk communication team because I can’t rely on one person. Different individuals working for my client have expertise in various risk areas. They should all be involved in the risk communication process accordingly.
3. Examine risk impact and probability
Impact and probability in risk assessment is critical. It is important that we communicate risks from the standpoint of tangible impact. It also helps if we talk about probability, particularly in quantifiable terms.
4. Communicate early and as much as possible
The key thing I do is that we make sure we communicate the risk early and often.
5. Promote accountability
Effective communication about risk is all about accountability. I make sure the right people in the organisation are helping to communicate the risks. This promotes accountability across the company. Risk management becomes easier when everyone is clear about their role and responsibility.
If you need any help with communicating risk, call me on 0411 745 193 or email me at [email protected].