Risk identification is a crucial aspect of the risk management process and an essential part of any business. However, there are often misconceptions about what risk identification entails and how it can be carried out effectively. To counter any possible resistance towards risk identification, it's important to understand what you're getting into when implementing this process, as well as the potential outcomes of failing to do so.
Resistance towards risk identification is a common problem for businesses. It's hard for people to take the time and effort to identify risks, especially when they have other priorities that are much more urgent. However, if you want to be successful in your business, it's crucial that you build the habit of identifying risks.
Here are some tips on how to build this habit:
1. Achieving buy-in.
One of the most important things you can do is make sure everyone understands why it is essential for your company to accept and embrace risk identification. A risk policy should be announced by the President or CEO. This shows that it is considered a priority and that the risks identified will reflect the company’s strategy and objectives.
Encourage buy-in by having an agenda for each meeting so that attendees know how their time will be allocated.
2. Adhere to deadlines.
The second thing you need is a deadline for when all of this will be completed. When presenting risks from a company-wide perspective, it is important to allow time for the merging of risks. Keep in mind that each person has a preferred method of working. If they’re more comfortable meeting at the end of the day, and working with hard copies of documents rather than electronic ones, accommodate their needs.
Follow up on your emails with a phone call if the recipient has not responded. People often miss emails and may need to have a conversation via phone in order to fully understand what you are trying to communicate.
3. Encourage high-quality work.
Finally, make sure you make it clear that any solution that's offered up as part of this process must be high quality. Stakeholders will be more likely to support your risk identification process if they see that it’s being done properly.
Check the risk register to determine whether each risk has been reviewed and updated. Is the person responsible for managing that risk still employed by the company? Don’t forget to follow up and offer to conduct a sample risk review over the phone or online.
Presenting the risk register on a SharePoint platform gives many qualified users access to risk mitigations, which helps them better understand the risks involved.
If you’ve struggled with these issues or need a consultant to teach you how to develop your own risk register, contact Laura Dickson at DTD Management.