How to discuss risks with decision makers?

How to discuss risks with decision makers?

When talking about the risks in a recent Board paper with two SLT members, one of them said something very interesting.

The risks section SHOULD make us feel uncomfortable.

The CTO's view was that if we highlight the things that are keeping us up at night and can demonstrate how well we have thought them through they will trust us more.

I found this interesting as I at times see risks being discussed in a ‘tick a box' fashion or alternatively being played down to reduce political rather than practical risk.

Given his view was so clear and strong vs what I so often see, I wanted to unpack his reasoning to help you too …

If we do share what keeps us up at night three things will happen. We

  • can be confident that the leadership will trust us
  • will enjoy a much more robust discussion that leads to a better outcome for the business
  • might just sleep better

If, alternatively, we are ‘gilding the lily' by only discussing the positives, leaders won’t trust us – and neither they should.

In his words: if we play it safe we would let both them and ourselves down as it demonstrates that we

  • haven't thought our proposition through deeply enough to be taken seriously
  • aren't ready to handle the inevitable risks we will face in delivering on our commitments
  • lack the courage to lead

This was food for thought to me and will push me to focus more intently on how risks are articulated in communication I help my clients prepare.

What about you?

How openly do you discuss the risks as you see them when lying awake at night?

I hope that helps. More next week.

Kind regards,
Davina

PRESENTED BY DAVINA STANLEY

Davina has helped smart people all over the world clarify and communicate complex ideas for 20+ years.

She began this work when she joined McKinsey & Company as a communication specialist in Hong Kong where she helped others use the Minto Pyramid Principle. She continued helping others when living in New York, Tokyo and now back in Australia.

Her clients include experts across many disciplines across Australia, Asia Pacific, New Zealand, the UK and the US. She currently coaches a number of C-suite executives as well as many mid-level folk and the occasional graduate.

Get her 4 Tips for Communicating Complex Ideas here.