How can you effectively communicate risk to nonprofits and charities?

1 Understand your audience

Before you communicate risk, you need to understand who your audience is, what their needs and concerns are, and how they prefer to receive information. Different audiences may have different levels of risk awareness, tolerance, and appetite, as well as different expectations and responsibilities. For example, your board may want to see a high-level overview of the strategic risks and mitigation plans, while your staff may want to know how the operational risks affect their daily work and what they can do to manage them. You can use surveys, interviews, or focus groups to gather feedback from your audience and tailor your risk communication accordingly.

2 Establish a risk culture

Risk communication is not a one-time event, but an ongoing process that requires a supportive risk culture. A risk culture is the shared values, beliefs, and behaviors that influence how your organization identifies, assesses, and responds to risks. To establish a risk culture, you need to involve your audience in the risk management process, provide regular training and education, encourage open and honest dialogue, and reward good risk practices. A risk culture can help you create a common language and understanding of risk, as well as foster a sense of ownership and accountability among your audience.

3 Choose the right format and channel

The format and channel of your risk communication can affect how your audience perceives and reacts to the information. You need to choose the format and channel that best suit your purpose, message, and audience. For example, you can use a risk register or a dashboard to present the key risks and indicators in a concise and visual way, or you can use a risk report or a newsletter to provide more details and analysis. You can also use different channels, such as email, website, social media, or face-to-face meetings, to reach your audience in different ways. You need to consider the advantages and disadvantages of each format and channel, as well as the frequency and timing of your communication.

4 Use clear and simple language

One of the biggest challenges of risk communication is to avoid jargon, technical terms, and acronyms that may confuse or alienate your audience. You need to use clear and simple language that your audience can easily understand and relate to. You can use examples, stories, or analogies to illustrate your points and make them more memorable. You can also use charts, graphs, or icons to visualize your data and make them more appealing. You need to avoid ambiguity, exaggeration, or understatement that may mislead or misinform your audience.

5 Highlight the benefits and opportunities

Risk communication is not only about informing your audience about the potential threats and challenges, but also about inspiring them to take action and seize opportunities. You need to highlight the benefits and opportunities of managing risk effectively, such as enhancing your performance, reputation, and impact. You can also showcase your success stories and best practices, as well as acknowledge your challenges and lessons learned. You need to communicate your risk appetite and tolerance, as well as your risk goals and strategies, to align your audience with your vision and mission. You need to emphasize the positive aspects of risk, while also being realistic and honest about the negative ones.

6 Seek feedback and improvement

Risk communication is a two-way process that requires feedback and improvement. You need to seek feedback from your audience on how they receive, understand, and use the information, as well as how they feel and think about the risks. You can use surveys, polls, or quizzes to measure the effectiveness of your communication, or you can use forums, blogs, or social media to encourage dialogue and interaction. You need to listen to your audience's opinions, questions, and suggestions, and address them promptly and respectfully. You need to monitor and evaluate your communication outcomes and impacts, and make adjustments and improvements as needed.