How can you communicate risk management strategies effectively to stakeholders in Banking?

1 Know your audience

The first step to effective communication is to understand who you are talking to, what they need to know, and how they prefer to receive information. Different stakeholders may have different levels of risk awareness, interest, and expectations, so you need to tailor your message accordingly. For example, senior management may want to see a concise summary of the key risks and mitigation actions, while regulators may require more detailed and evidence-based reports. You also need to consider the format, frequency, and channel of your communication, and use appropriate language and terminology.

2 Define your objectives

The second step is to clarify what you want to achieve with your communication, and how you will measure its success. Depending on your audience and purpose, your objectives may vary from informing, educating, persuading, or influencing. For example, you may want to inform senior management about the current risk profile and trends, educate clients about the benefits and risks of a new product, persuade regulators that you comply with the standards and rules, or influence investors to trust your risk management capabilities. You also need to define the key messages, indicators, and outcomes that you want to convey and track.

3 Use visual aids

The third step is to use visual aids to enhance your communication and make it more engaging and memorable. Visual aids can help you to simplify complex data, highlight important points, show comparisons and trends, and illustrate scenarios and impacts. Some examples of visual aids are charts, graphs, tables, diagrams, maps, and infographics. However, you need to use visual aids wisely and avoid cluttering, misleading, or confusing your audience. You also need to ensure that your visual aids are consistent, accurate, and relevant to your message.

4 Tell a story

The fourth step is to tell a story that connects your risk management strategies to the bigger picture and the stakeholder's interests and values. A story can help you to explain the context, rationale, and implications of your risk management decisions, as well as to inspire, motivate, and persuade your audience. A story can also help you to showcase your risk culture, vision, and values, and to demonstrate your commitment and accountability. To tell a good story, you need to have a clear structure, a compelling plot, a relatable character, and a meaningful message.

5 Invite feedback

The fifth step is to invite feedback from your stakeholders and listen to their opinions, questions, and concerns. Feedback can help you to assess the effectiveness of your communication, to identify gaps and areas for improvement, and to build trust and rapport with your audience. Feedback can also help you to gain insights, perspectives, and ideas that can enhance your risk management strategies and performance. To invite feedback, you need to be open, respectful, and responsive, and to use various methods, such as surveys, interviews, meetings, and forums.

6 Review and improve

The sixth and final step is to review and improve your communication based on the feedback and results that you receive. You need to monitor and evaluate your communication objectives, messages, and outcomes, and to identify what worked well and what did not. You also need to learn from your experience and best practices, and to apply the lessons and recommendations to your future communication. By reviewing and improving your communication, you can ensure that you communicate risk management strategies effectively to stakeholders in banking.

7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?