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Strategic Risk Communication and the Value of Storytelling Dr. Karen Hardy ERM Thought Leader and Advisor
Strategic Risk Communication and
the Value of Storytelling
Dr. Karen Hardy
ERM Thought Leader and Advisor
Thank you for Being Here!
• Why this subject matter is so timely and important
• Same Data, Different Stories
• Jot Down Some Notes!
• Case Study
• Documentary Movie Trailer (3 min 42secs)
• Sample Template
The Need for Strategic Risk Communication and Storytelling is Everywhere!
• Switch and Data
• Legislation
• Budget Formulation
What’s the Data?—This is My Story through
Observation (2mins) https://youtu.be/OTFGDiEhsDk
We Live in A VUCA World!
• We live in a VUCA world- one that’s Volatile, Uncertain, Complex, and Ambiguous.
• Leaders are more reluctant to make much needed hard decisions to determine the direction of their organizations.
• The future of effective risk management will not be grounded in technical expertise but how well we execute our adaptive leadership skills.
What are Adaptive Leadership Skills?
• One step above our authoritative technical expertise.
• Technical problems are solved with current know-how- usually through the application of technical skills
• Some challenges addressed through changes in people’s priorities, beliefs, habits, and loyalties.
• Adaptive leadership skills used to mobilize discovery, shed entrenched ways, tolerating loss, and generating the new capacity to thrive.
• VUCA world = Leaders will need clarity in making decisions.
• Move from in-action to action
When Do You Need Adaptive Leadership Skills?
NO KNOWN SOLUTION
PEOPLE WOULD RATHER AVOID
ISSUES
REASON AND LOGIC ALONE
ARE NOT SUFFICIENT
RECURRING PROBLEM
FAILURE TO RESOLVE
COMPETING PRIORITIES
MOVING FORWARD FEELS
RISKY
PEOPLE MUST WORK ACROSS BOUNDARIES
Consider This….
• A 2018 survey of mostly US businesses conducted by North Carolina State University and the American Institute of CPAs found that 69 percent of organizations admit to not having a complete Enterprise Risk Management (ERM) process
Consider This….
One recommended skill for advancing ERM include enabling integration and interconnectivity by breaking down siloes across the organization to share information
This change does not come easy.
MARK CUBAN
“We are going to have a lot of displaced workers- the nature of work is changing. So a new skill will become more in-demand than it has ever been: creative thinking
….there will be a greater demand in 10 years for liberal arts majors than there were for programming and engineering majors….”
Communication is the Key
• Despite advancements in Risk IT information systems, risk data gathering, risk registers, risk profiles and robust risk data generation reporting, companies are still STUCK when it comes to risk management decision-making.
• Leaders don’t need more Dashboards or monthly reports!
• Better strategic risk communication could be the adaptive leadership skill missing from the risk professional’s toolbox that can drive leadership to actionable decision-making.
Everyone Remembers the Peanuts Comics by Charles Schultz
Muted Risk Conversations
• The Peanuts characters were able to communicate with their imaginary parents and teachers through a muted-language that only Charlie Brown and his friends understood.
• What we did not know is that Linus had a crush on Charlie Brown’s teacher, Mrs. Othmeyer.
• The reason being is that she UNDERSTOOD HIM.
Data Set: 2 Min Video
10 Million Cups of Coffee a Day
4 Billion Cups of Coffee a Year
https://youtu.be/pjbaZZWFO1A
The C-Suite Connection
• Help leaders understand the risk we are trying to communicate that leads to action and more organizations instituting COMPLETE ERM processes.
• In a world of information overload and short attention spans, risk professionals are looking for a more effective way to get their messages across and to help them stand out from all the ‘noise’ from competing departments
• At the root of strong strategic communication is effective storytelling.
Why Storytelling Now?
This is a key advantage when breaking down siloes, creating movement, eliminating C-suite
reservations for moving forward, avoidance of key issues or shredding
entrenched ways.
Storytelling creates a more open relationship and environment,
openness and builds trust.
Emotions drive our decisions
(source: Gabrielle Dolan)
When we seek buy-in from an audience (i.e. C-suite)- our audience is often forming these types of questions about us:
• Do I buy from you?
• Do I get behind this change?
• Do I respect you?
• Do I take your advice?
• Do I get behind this change?
Decisions based on
Logic or Emotions?
Research by neuroscientist Antonio Damasio shows that emotion plays a significant role in our ability to make decisions.
• Logic does not drive choices. We have already made an emotional decision and we then use logic to justify the choice.
• We still attempt to Influence others with PowerPoint presentations of facts and figures. We want them to be responsive.
• This strategy is based on logic. Yet science says that we make up our minds based on our emotions and how we feel about something.
A NEW LEASH ON LIFE: THE K9s FOR WARRIORS STORY (CASE STUDY)
• How to Turn Risk Data Into Effective Storytelling and Win Over Executive Leadership
• Link to EMMY AWARD CEREMONY YOU TUBE
• https://youtu.be/6FYgQAGnf24
Risk:Veterans with PTSD Risk Exposure: High Risk AreaMitigation: Funding for Workshops
Audience: DonorsNumber of Similar organizations: Hundreds!
• 1,068 Dogs rescued
• 564 Warriors rescued
•Warriors suffer from post-traumatic brain injury which can be deadly disorder
• 22 Veterans die by suicide each day (source: VA 2013)
•One every 65 minutes
Documentary Movie Trailer (3mins/42 secs)
https://beambitious.clickfunnels.com/optin20981001
Were you able to see the risk information interpreted into
storytelling? Into a Message?
https://beambitious.clickfunnels.com/optin20981001
Risk: Risk Exposure: Risk Response:Program Objective: Program Outcomes:
Audience: Number of Similar Risks:
Key Factors:
• XX
• XX
• XX
Response Resource Request $:
SAMPLE COACHING TEMPLATE
STRATEGIC RISK COMMUNICATION STORYTELLING
Story Telling Factors:
xx
xx
xx
xx
Core Message:
Conclusion
We live in a VUCA World
Leaders shrinking back from making
key decisions regarding
organizational risk
Reluctance influenced by
adaptive challenges, not lack
of available technical expertise
Risk professionals must step up and embrace adaptive leadership skills to
remain relevant
Strategic risk communication is
a key adaptive skill
Storytelling creates openness
and trust for getting unstuck
