ISO 31000:2018 Clause 5.4.5 Establishing communication and consultation

The organization should establish an approved approach to communication and consultation in order to support the framework and facilitate the effective application of risk management. Communication involves sharing information with targeted audiences. Consultation also involves participants providing feedback with the expectation that it will contribute to and shape decisions or other activities. Communication and consultation methods and content should reflect the expectations of stakeholders, where relevant. Communication and consultation should be timely and ensure that relevant information is collected, collated, synthesized and shared, as appropriate, and that feedback is provided and improvements are made.

Clause 5.4.5 of ISO 31000:2018 emphasizes the importance of effective communication and consultation throughout the risk management process. Here’s a brief overview: The primary goal is to ensure that communication and consultation are integrated into the risk management process to enhance the effectiveness of risk management activities. The key elements of the clause are:

• Identify Stakeholders: Determine the relevant internal and external stakeholders who need to be involved in or informed about the risk management process.
• Establish Communication Channels: Define and establish communication channels that enable effective flow of information among stakeholders. This may include meetings, reports, documentation, and other communication tools.
• Consultation Process: Develop a systematic approach to consultation, ensuring that relevant stakeholders are engaged at appropriate stages of the risk management process.
• Timing and Frequency: Specify the timing and frequency of communication and consultation activities. This ensures that information is shared in a timely manner and that stakeholders are kept informed throughout the risk management process.
• Documentation: Document communication and consultation activities. This includes recording decisions, feedback, and any relevant information exchanged during the process.
• Integration with Risk Management Process: Communication and consultation should be integrated seamlessly with other components of the risk management process, such as risk identification, assessment, treatment, and monitoring.
• Continuous Improvement: Establish mechanisms for feedback and continuous improvement of the communication and consultation process. This involves learning from experiences, adjusting communication strategies as needed, and enhancing the overall effectiveness of risk management.
• Cultural and Organizational Considerations: Consider the cultural and organizational context when designing communication and consultation processes. Tailor approaches to suit the specific needs and characteristics of the organization.
• Responsibilities: Clearly define roles and responsibilities related to communication and consultation. Ensure that individuals and teams understand their roles in facilitating effective communication and consultation.

Clause 5.4.5 of ISO 31000:2018 emphasizes the need for a well-structured and integrated approach to communication and consultation in the context of risk management. It underscores the importance of involving relevant stakeholders, establishing effective channels, and continuously improving these processes to enhance the organization’s ability to manage risks.

Communication and consultation with respect to Risk management

In the context of risk management, communication and consultation are critical elements that facilitate the effective identification, assessment, and treatment of risks within an organization. Here’s a breakdown of their meanings in this specific context:

1. Communication:
   • Definition: Communication involves the exchange of information, ideas, and feedback among relevant stakeholders within an organization. It is a two-way process that includes both conveying information and receiving input.
   • Role in Risk Management:
     • Information Dissemination: Communicating risk-related information, such as identified risks, assessment results, and risk treatment plans, to relevant individuals and departments.
     • Creating Awareness: Ensuring that all stakeholders are aware of the organization’s risk management policies, procedures, and the importance of their role in managing risks.
     • Reporting: Providing regular updates on the status of risk management activities, changes in the risk landscape, and the effectiveness of risk treatments.
2. Consultation:
   • Definition: Consultation involves seeking input, feedback, and advice from stakeholders who may be affected by or have insights into the risks faced by the organization. It is a collaborative process that aims to gather diverse perspectives.
   • Role in Risk Management:
     • Stakeholder Involvement: Engaging relevant stakeholders, both internal and external, in the risk management process to ensure a comprehensive understanding of potential risks.
     • Expert Input: Seeking advice from subject matter experts and individuals with specialized knowledge to enhance the quality of risk assessments and treatment plans.
     • Risk Perception: Understanding how different stakeholders perceive and prioritize risks, as this can vary based on their roles, responsibilities, and perspectives.
3. Integration of Communication and Consultation:
   • Effective risk management requires the seamless integration of communication and consultation processes:
     • Feedback Loop: Communication should include mechanisms for receiving feedback from stakeholders, which in turn informs the risk management process.
     • Transparent Communication: Open and transparent communication ensures that relevant information is shared, and stakeholders feel comfortable providing input.
     • Timely Consultation: Consultation should occur at key stages of the risk management process to gather insights when decisions are being made.
4. Benefits of Effective Communication and Consultation:
   • Informed Decision-Making: Well-informed decisions can be made when decision-makers have access to relevant information and input from those who may be impacted.
   • Risk Ownership: Effective communication and consultation contribute to a culture of risk ownership, where individuals and teams understand their roles in managing risks.
   • Adaptability: Regular communication and consultation allow organizations to adapt their risk management strategies in response to changing internal and external factors.

Communication and consultation in risk management involve the exchange of information and the collaborative involvement of stakeholders to enhance the organization’s ability to identify, assess, and address risks effectively. Both processes are integral to building a risk-aware culture and ensuring that risk management is a dynamic and responsive activity within the organization.

The organization should establish an approved approach to communication and consultation in order to support the framework and facilitate the effective application of risk management.

Having an approved approach to communication and consultation is a foundational element of a robust risk management system. It provides the structure and guidance needed to ensure that these processes are integrated, effective, and supportive of the organization’s risk management goals. Here’s a breakdown of why this is crucial:

1. Consistency and Standardization: An approved approach ensures that communication and consultation processes are consistent across the organization. Standardization helps in avoiding confusion and ensures that everyone follows the same set of procedures and guidelines.
2. Alignment with Risk Management Framework: The established approach should align with the overall risk management framework of the organization. This alignment ensures that communication and consultation activities support and reinforce the broader risk management goals and objectives.
3. Clear Roles and Responsibilities: The approved approach should define roles and responsibilities for communication and consultation. This clarity ensures that individuals and teams understand their roles in the process, reducing the likelihood of miscommunication or omissions.
4. Integration into Organizational Processes: The approach should be seamlessly integrated into existing organizational processes. This integration ensures that communication and consultation are not isolated activities but are embedded in day-to-day operations and decision-making.
5. Risk Communication Plan: Establishing an approved approach involves developing a comprehensive risk communication plan. This plan should outline the key messages, target audiences, communication channels, and the timing of communications related to risk management.
6. Feedback Mechanisms: The approach should incorporate mechanisms for feedback from stakeholders. This feedback loop is essential for continuous improvement and for ensuring that the organization remains responsive to changing risk scenarios.
7. Compliance and Governance: An approved approach is crucial for ensuring compliance with relevant regulations and standards. It also supports governance by providing a structured framework for monitoring and evaluating the effectiveness of communication and consultation processes.
8. Adaptability to Organizational Changes: The approach should be adaptable to changes within the organization, such as structural changes, technological advancements, or shifts in the business environment. Flexibility is key to maintaining the relevance and effectiveness of communication and consultation practices.

Benefits:

• Efficiency and Effectiveness: A well-established approach contributes to the efficiency and effectiveness of communication and consultation efforts. This, in turn, enhances the organization’s ability to identify, assess, and respond to risks in a timely manner.
• Risk Culture Enhancement: An approved approach fosters a risk-aware culture by emphasizing the importance of communication and collaboration in managing risks. It encourages a proactive and shared responsibility for risk management across the organization.
• Trust and Transparency: Clear, approved communication processes build trust among stakeholders. Transparency in how risks are communicated and consulted upon promotes a culture of openness and accountability

Communication involves sharing information with targeted audiences.

Communication is a fundamental process that involves the exchange of information between a sender (or multiple senders) and a receiver (or multiple receivers) with the intention of conveying a message. Here are some key aspects to consider in relation to your statement:

1. Information Sharing: Communication is the vehicle through which information is shared. This information can take various forms, including facts, ideas, opinions, instructions, or updates.
2. Targeted Audiences: Effective communication is often tailored to specific audiences. Different stakeholders within an organization or external entities may require different types of information. Tailoring the message to the needs and interests of the audience enhances the likelihood of the message being understood and well-received.
3. Intent and Purpose: Communication is purposeful. Whether the goal is to inform, persuade, instruct, or collaborate, there is always an underlying intent or purpose behind the act of sharing information.
4. Channels and Mediums: Communication can occur through various channels and mediums, including verbal (spoken or written), non-verbal (body language, gestures), and digital (emails, reports, presentations). The choice of communication channels depends on factors such as the nature of the message, the preferences of the audience, and the context.
5. Two-Way Process: While your statement focuses on sharing information, it’s important to note that communication is ideally a two-way process. Effective communication involves not only conveying information but also receiving feedback and ensuring understanding on the part of the audience.
6. Feedback and Clarification: Encouraging feedback and providing opportunities for clarification are integral to successful communication. This ensures that the message is received as intended and allows for adjustments if there is any confusion or misunderstanding.
7. Context and Timing: The context in which communication takes place and the timing of the message are crucial factors. Consideration of the broader context helps in crafting messages that are relevant and timely.
8. Cultural Considerations: Cultural nuances can influence how information is interpreted. Effective communicators are mindful of cultural differences and adapt their communication style accordingly to ensure cross-cultural understanding.

In various contexts, including organizational settings, risk management, and interpersonal relationships, effective communication is a cornerstone for success. It establishes a common understanding, fosters collaboration, and contributes to the overall achievement of goals and objectives.

Consultation also involves participants providing feedback with the expectation that it will contribute to and shape decisions or other activities.

Consultation is a dynamic process that seeks to engage participants actively, encouraging them to provide feedback with the expectation that this feedback will play a role in shaping decisions or activities. This participatory approach contributes to more inclusive, well-informed, and effective decision-making within organizations and other contexts. In a consultative process, participants are not only informed or engaged, but they are actively invited to provide feedback, opinions, and insights. The expectation is that their input will be considered in decision-making or in shaping various activities within an organization. Here are some key points related to this aspect of consultation:

1. Active Participation: Consultation goes beyond one-way communication; it involves active participation from the individuals or groups being consulted. Participants are encouraged to express their thoughts, concerns, and suggestions.
2. Feedback Collection: Participants in a consultation process are expected to provide feedback, which can take various forms. This feedback may include opinions, recommendations, criticisms, or additional information that is relevant to the matter at hand.
3. Contribution to Decision-Making: The purpose of seeking feedback through consultation is to integrate the diverse perspectives of stakeholders into the decision-making process. Their input is considered in shaping policies, strategies, or actions.
4. Informed Decision-Making: By actively seeking and considering feedback, decision-makers can make more informed and well-rounded decisions. Consultation helps ensure that decisions are not made in isolation but are grounded in a broader understanding of the situation.
5. Transparency and Inclusivity: Consultation fosters transparency by involving relevant stakeholders in the decision-making process. It contributes to an inclusive approach where a variety of perspectives, including those of potentially affected parties, are taken into account.
6. Building Trust and Engagement: Actively involving participants in providing feedback builds trust and engagement. When people feel that their opinions are valued and considered, they are more likely to be invested in the outcomes of the decision-making process.
7. Effective Communication Channels: Establishing effective communication channels is crucial for receiving meaningful feedback. These channels can include surveys, meetings, workshops, online platforms, or other mechanisms that suit the nature of the consultation.
8. Iterative Process: Consultation is often an iterative process, involving ongoing communication and feedback loops. This allows for adjustments and refinements based on the evolving understanding and insights gained through the consultation process.
9. Post-Consultation Communication: Following a consultation, it’s important to communicate how the feedback was considered and incorporated into decisions or actions. This post-consultation communication reinforces transparency and keeps stakeholders informed.

Communication and consultation methods and content should reflect the expectations of stakeholders, where relevant.

Aligning communication and consultation with stakeholder expectations involves a thoughtful and proactive approach that considers the diversity of stakeholders and their preferences. By doing so, organizations can enhance the effectiveness of their engagement efforts and build stronger relationships with their stakeholders. This emphasizes a crucial principle in effective communication and consultation: aligning methods and content with the expectations of stakeholders. Understanding and meeting the expectations of stakeholders is essential for building trust, ensuring meaningful engagement, and achieving successful outcomes. Here are key considerations related to this principle:

1. Stakeholder-Centric Approach: Communication and consultation efforts should be designed with a focus on the needs, preferences, and expectations of stakeholders. Tailoring methods and content to match stakeholders’ perspectives enhances the relevance and effectiveness of the communication.
2. Identifying Stakeholder Expectations: Organizations should proactively identify and understand the expectations of their stakeholders. This involves conducting stakeholder analysis to determine their interests, concerns, communication preferences, and the level of detail they require.
3. Varied Communication Channels: Different stakeholders may have different preferences for communication channels. Some may prefer face-to-face meetings, while others may prefer digital channels such as emails or online platforms. Employing a mix of channels ensures that the communication reaches a diverse audience.
4. Adaptability: Stakeholder expectations may evolve over time or in response to specific events. Communication and consultation strategies should be adaptable to accommodate changing expectations, ensuring continued relevance and effectiveness.
5. Clarity and Relevance of Content: The content of communication and consultation materials should be clear, concise, and directly relevant to the concerns and interests of stakeholders. Providing information that aligns with their expectations enhances engagement and understanding.
6. Frequency of Updates: The frequency of communication should be aligned with stakeholders’ expectations. Some stakeholders may prefer regular updates, while others may expect communication on an as-needed basis. Striking the right balance is crucial.
7. Interactive Methods: Employing interactive methods, such as workshops, forums, or surveys, can be effective in gathering feedback and engaging stakeholders. This allows for a two-way exchange of information and helps address specific concerns or questions.
8. Cultural Sensitivity: Consideration of cultural differences is essential. Communication and consultation methods should be culturally sensitive to ensure that the content and approach resonate with stakeholders from diverse backgrounds.
9. Inclusivity: Ensure that the communication and consultation process is inclusive, considering the perspectives of all relevant stakeholders. This fosters a sense of ownership and shared responsibility for the outcomes.
10. Feedback Mechanisms: Establish mechanisms for stakeholders to provide feedback on communication and consultation methods. This feedback loop helps organizations continuously improve their engagement strategies based on stakeholder input.

Communication and consultation should be timely and ensure that relevant information is collected, collated, synthesized and shared, as appropriate, and that feedback is provided and improvements are made.

Effective communication and consultation involve a timely, iterative, and feedback-driven process. By collecting, synthesizing, and sharing relevant information appropriately and actively seeking and responding to feedback, organizations can ensure that their decision-making processes are well-informed, transparent, and continually improving.

1. Timeliness:
   • Importance: Timeliness is crucial in communication and consultation. Information should be shared and feedback collected in a manner that aligns with the pace of decision-making and organizational activities.
   • Relevance: Timely communication ensures that stakeholders receive information when it is most relevant, allowing them to make informed decisions and contribute meaningfully to the process.
2. Information Collection and Synthesis:
   • Collection: Relevant information should be systematically gathered from various sources, including stakeholders, to ensure a comprehensive understanding of the context.
   • Synthesis: Once collected, information needs to be organized and synthesized to derive meaningful insights. This synthesis provides a basis for decision-making and action.
3. Appropriate Sharing:
   • Tailoring: The way information is shared should be tailored to the needs and expectations of the audience. Different stakeholders may require information in different formats or levels of detail.
   • Clarity: Ensure that the shared information is clear, concise, and easily understandable. This enhances the effectiveness of communication and supports informed decision-making.
4. Feedback Mechanisms:
   • Prompt Feedback: Establish mechanisms for stakeholders to provide feedback promptly. Timely feedback allows for adjustments to plans or strategies based on emerging issues or changing circumstances.
   • Continuous Loop: Communication and consultation should involve a continuous feedback loop, promoting ongoing improvement and responsiveness to stakeholder input.
5. Continuous Improvement:
   • Learning from Feedback: Act on the feedback received. If improvements are suggested, organizations should be proactive in making necessary changes to enhance the effectiveness of communication and consultation processes.
   • Iterative Process: Treat communication and consultation as iterative processes that can be refined over time based on experience and stakeholder feedback.
6. Transparency:
   • Openness: Transparency is vital. Communicate openly about decisions, actions taken, and any changes resulting from feedback. This builds trust and credibility with stakeholders.
   • Sharing Outcomes: Share the outcomes of decision-making processes, explaining how feedback contributed to those outcomes. This helps stakeholders understand the impact of their input.
7. Adaptability:
   • Flexibility: Be adaptable to changing circumstances. If new information emerges or the organizational context evolves, be flexible in adjusting communication and consultation strategies accordingly.
8. Accountability:
   • Responsibility for Improvement: Clearly assign responsibilities for implementing improvements based on feedback. Accountability ensures that the organization is committed to learning and refining its processes.

Example of procedure for establishing communication and consultation in Risk Management

Objective: The objective of this procedure is to establish a systematic and effective approach to communication and consultation in the organization’s risk management process, ensuring that relevant stakeholders are informed, engaged, and their feedback is considered in decision-making.

1. Identification of Stakeholders:

1. Conduct a stakeholder analysis to identify internal and external stakeholders relevant to the organization’s risk management.
2. Categorize stakeholders based on their interests, influence, and potential impact on the organization’s risk landscape.

2. Communication and Consultation Plan:

1. Develop a comprehensive communication and consultation plan aligned with the organization’s risk management framework.
2. Specify communication objectives, target audiences, key messages, and desired outcomes.
3. Define appropriate communication channels (e.g., meetings, reports, emails, workshops) considering the preferences of different stakeholders.

3. Communication Process:

1. Establish clear roles and responsibilities for individuals involved in the communication process, including a designated communication coordinator.
2. Implement a regular communication schedule to keep stakeholders informed about the risk management process, changes in the risk landscape, and relevant updates.
3. Ensure that communication is clear, concise, and tailored to the needs of different stakeholders.

4. Consultation Process:

• Identify key stages in the risk management process where consultation with stakeholders is necessary (e.g., risk identification, risk assessment, development of risk treatment plans).
• Design consultation methods that encourage active participation, such as workshops, surveys, or focus groups.
• Clearly communicate the purpose and expectations of the consultation process to stakeholders.
• Establish mechanisms for collecting, collating, and analyzing feedback received during the consultation.

5. Feedback and Improvement:

1. Develop a system for receiving and documenting feedback from stakeholders on the effectiveness of communication and consultation processes.
2. Regularly review feedback to identify areas for improvement.
3. Implement improvements based on the feedback received, and communicate these changes to stakeholders.

6. Documentation and Record-Keeping:

• Maintain records of communication and consultation activities, including meeting minutes, reports, and feedback received.
• Ensure that documentation is accessible and organized for future reference and auditing purposes.

7. Training and Awareness:

1. Provide training to relevant personnel on effective communication and consultation practices in the context of risk management.
2. Promote awareness among employees about the importance of their role in the communication and consultation processes.

8. Continuous Monitoring and Review:

• Regularly monitor the effectiveness of communication and consultation activities.
• Conduct periodic reviews of the procedure to ensure its relevance and alignment with the organization’s goals and risk management framework.

Communication Matrix for Risk Management

Stakeholder	Purpose	Information to Share	Frequency	Method	Responsible
Executive Leadership	Provide high-level risk updates	Key risk indicators, overall risk posture	Monthly	Executive summaries, presentations	Risk Manager
Project Team	Share detailed risk information and mitigation plans	Detailed risk assessments, mitigation plans	Bi-weekly	Project meetings, risk workshops	Project Manager
Risk Owners	Notify and update on specific risks	Changes in risk status, mitigation progress	As needed	Email notifications, risk register updates	Risk Manager
Board of Directors	Inform on major risks and risk management strategies	Significant risk events, strategic risk decisions	Quarterly	Board meetings, risk reports	Risk Manager
Internal Audit	Provide risk management progress and updates	Status of risk management activities, response to previous audit findings	Annually	Internal audit reports, presentations	Risk Manager
Regulatory Bodies	Compliance with regulations and reporting	Compliance status, risk control measures	As required by regulations	Compliance reports, regulatory filings	Compliance Officer
Employees	Raise awareness and educate on risk management practices	General risk awareness, changes in risk policies	Annually	Training sessions, newsletters	Risk Manager or HR
Customers/Clients	Communicate about potential impacts on service delivery	Service disruption risks, mitigation plans	As needed	Customer notifications, service-level agreements	Account Managers

Explanation of Columns:

1. Stakeholder: Identify the specific stakeholders or groups involved in the risk management communication plan.
2. Purpose: Define the purpose of communication with each stakeholder. This could include providing updates, seeking feedback, or sharing critical information.
3. Information to Share: Specify the type of information that needs to be communicated to each stakeholder. This may include risk assessments, mitigation plans, status updates, or other relevant details.
4. Frequency: Determine how often communication should occur with each stakeholder. This could be daily, weekly, monthly, quarterly, or as needed.
5. Method: Specify the communication methods or channels to be used for each stakeholder. This may include meetings, reports, emails, workshops, or other communication tools.
6. Responsible: Identify the person or role responsible for initiating and managing communication with each stakeholder. This ensures accountability for the communication plan.