Why is Communication Critical for Risk Managers?

Risk communication is a critical tool for disseminating information and understanding a risk management decision. However, there is a difference between simply communicating and effectively doing so. A successful risk management plan demands participation from within the company. This article at Consultancy.eu discusses the importance of internal and external communication in the risk management lifecycle.

Role of Effective Communication

Improves Decision-Making

To encourage proper communication, companies must clearly define business goals. This helps every staff member understand motivations and desires to work towards a common idea and success. “It is necessary to engage with a range of internal and external stakeholders to determine what is achievable and to make an assessment of the alternative strategies which may be taken to achieve those objectives,” says the author.

Provides Realistic Expectations

Project stakeholders invest their time, support, and finances into your project for multiple reasons. Therefore, it is essential to maintain transparent communications about project risks. If your stakeholders have unrealistic expectations that you cannot meet, they will most likely become disengaged or unhappy. This damages your project’s success. Communicating potential risks that could alter project timelines and budget to your stakeholders will boost their trust and confidence in your project.

Promotes Accountability

Studies reveal that 29% of businesses identify accountability as the key obstacle to successful project execution. This highlights the need for better role allocation and procedures to dealing with risks. By communicating potential risks to the right people—team members and stakeholders—you will understand who you should allocate roles and responsibilities to.

Unifies Your Team

In modern times, project teams are often scattered across the globe. By taking steps to effectively communicate risks, you can identify potential issues in advance and equip your teams with the ability to respond. Risk communication eliminates confusion and boosts problem-solving skills in your teams.

To read the original article, click on https://www.consultancy.eu/news/5977/why-communication-is-key-for-effective-risk-management.

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