It can be difficult to get stakeholders engaged with risk management. This is usually due to a lack of understanding that for risk management to be successful it is the responsibility of the whole organisation, and everyone needs to play their part.
As a risk manager or risk leader, it is your job to educate the stakeholders about the importance of risk management, demonstrating how risk management will help ensure strategic objectives are met and improve the overall resilience of your organisation.
Benefits of greater stakeholder engagement
- More comprehensive risk identification. With diverse knowledge and experience, a wider range of risks can be identified.
- More accurate risk assessments. Stakeholders can provide valuable insights into the likelihood and impact of different risks. This can help you prioritise risks more effectively and allocate resources accordingly.
- Enhanced Risk Management Strategies: Stakeholders can offer suggestions for mitigating risks or exploiting opportunities that arise from them. This can lead to more robust and adaptable risk management plans.
- Increased Buy-in and Ownership: When stakeholders feel involved in the risk management process, they are more likely to support the chosen strategies and take ownership of their implementation.
Different types of stakeholders include:
- Users
- Business Units
- Operations Teams
- Risk Owners
- Leadership Team & Managers
When dealing with your stakeholders you need to understand that everyone learns differently and so offering a combination of different resources and options for participating in risk management is important for successful stakeholder engagement.
Kolb’s learning journey
Kolb’s learning journey shows the different ways in which people learn.
As you can see, some people prefer to learn by visuals, others by reading/writing, some prefer listening and others prefer to learn with a hands-on practical manner. These different ways of learning are why it is important to provide a combination of different options when teaching and guiding people on their risk management journey.
Tips for effective stakeholder engagement
- Identify Stakeholders: This includes both internal stakeholders (employees, managers) and external stakeholders (customers, suppliers, regulators).
- Prioritise Stakeholders: Analyse their level of influence and interest in the project or activity.
- Develop a Communication Plan: Tailor your communication approach to each stakeholder group, considering their preferred channels and information needs.
- Actively Engage Stakeholders: Use workshops, surveys, interviews, or other methods to gather their input on risks and risk management strategies.
- Maintain Open Communication: Regularly update stakeholders on the risk management process and any changes to the plan.
By effectively engaging stakeholders in risk management, you can create a more comprehensive, robust, and supported approach to managing potential threats and opportunities.
Why not check out our webinar on risk culture and stakeholder engagement?
