ISO 31000:2018 Clause 6.2 Communication and consultation

The purpose of communication and consultation is to assist relevant stakeholders in understanding risk, the basis on which decisions are made and the reasons why particular actions are required.

Communication seeks to promote awareness and understanding of risk, whereas consultation involves obtaining feedback and information to support decision-making. Close coordination between the two should facilitate factual, timely, relevant, accurate and understandable exchange of information, taking into account the confidentiality and integrity of information as well as the privacy rights of individuals. Communication and consultation with appropriate external and internal stakeholders should take place within and throughout all steps of the risk management process. Communication and consultation aims to:

• bring different areas of expertise together for each step of the risk management process;
• ensure that different views are appropriately considered when defining risk criteria and
  when evaluating risks;
• provide sufficient information to facilitate risk oversight and decision-making;
• build a sense of inclusiveness and ownership among those affected by risk.

ISO 31000:2018 Clause 6.2 focuses on establishing effective communication and consultation processes to ensure that risk management is a collaborative and well-informed effort involving both internal and external stakeholders. Clear communication and consultation help organizations make informed decisions, enhance risk awareness, and improve overall risk management effectiveness. It emphasizes the importance of establishing a systematic and timely process for communication and consultation regarding risk management. It highlights the need to ensure that information is shared across the organization and with relevant stakeholders.

Communication

Organizations are required to establish a systematic and structured approach to communication that considers the needs of the intended recipients. This includes the use of clear and concise language to convey information about risk.

• Internal communication: There should be effective communication within the organization to facilitate a common understanding of risk. This involves sharing information about the risk management framework, processes, and outcomes.
• External communication: Organizations are encouraged to communicate with external stakeholders to provide and receive relevant information about risk. This helps in building trust, managing expectations, and ensuring that external perspectives are considered in the risk management process.

Consultation

This section emphasizes the importance of consulting with internal and external stakeholders as part of the risk management process. Consultation helps in gaining diverse perspectives and insights that contribute to more comprehensive risk assessments.

• Internal consultation: Organizations are required to consult with relevant internal stakeholders to ensure that different perspectives are considered when assessing and treating risks. This includes seeking input from individuals with different roles, responsibilities, and expertise.
• External consultation:External stakeholders, such as regulators, customers, suppliers, and other relevant parties, should be consulted to gather additional insights into the external context and potential risks. This collaboration helps in aligning risk management efforts with the broader environment.

Establishing effective communication and consultation processes for risk management involves a systematic approach that engages both internal and external stakeholders. Here are some key steps that organizations can take:

1. Define Communication and Consultation Objectives: Clearly articulate the objectives of communication and consultation in the context of risk management. Define what information needs to be communicated, to whom, and why.
2. Identify Stakeholders: Identify internal and external stakeholders who have an interest in or are affected by the organization’s risks. Consider a broad range of stakeholders, including employees, customers, suppliers, regulators, and other relevant parties.
3. Understand Stakeholder Needs: Analyze the information needs and expectations of each stakeholder group. Tailor communication and consultation strategies based on the specific needs and interests of different stakeholders.
4. Develop a Communication Plan: Create a comprehensive communication plan that outlines the methods, frequency, and channels of communication. Specify the roles and responsibilities of individuals or teams responsible for communication.
5. Use Clear and Transparent Language: Communicate risk information in a clear, concise, and easily understandable manner. Avoid jargon and technical terms that may be confusing to non-specialists.
6. Leverage Multiple Communication Channels: Use a mix of communication channels to reach different stakeholders effectively. Consider using written documents, meetings, presentations, workshops, and digital platforms to disseminate information.
7. Encourage Two-Way Communication: Foster an environment where stakeholders feel comfortable providing feedback and asking questions. Establish mechanisms for stakeholders to express their opinions and share their insights regarding risk.
8. Conduct Regular Consultations: Implement a regular schedule for consulting with stakeholders on risk-related matters. Seek input from various stakeholders during risk assessments and decision-making processes.
9. Utilize Technology: Explore the use of technology tools and platforms to facilitate communication and collaboration. Consider using risk management software or collaborative platforms for sharing information.
10. Provide Training and Awareness Programs: Conduct training sessions to increase awareness among stakeholders about risk management principles and processes. Ensure that stakeholders understand their roles and responsibilities in the risk management framework.
11. Establish Feedback Mechanisms: Implement mechanisms for stakeholders to provide ongoing feedback on the effectiveness of risk communication and consultation processes. Use feedback to continuously improve and refine communication strategies.
12. Adapt to Changes: Stay flexible and adapt communication and consultation strategies based on changes in the organizational environment, risks, or stakeholder dynamics.

The purpose of communication and consultation is to assist relevant stakeholders in understanding risk, the basis on which decisions are made and the reasons why particular actions are required.

Communication and consultation in the context of risk management serve as essential tools for fostering understanding, transparency, and informed decision-making among both internal and external stakeholders. This, in turn, contributes to the overall effectiveness of the organization’s risk management efforts. Let’s break down the key components:

1. Understanding Risk:
   • Internal Stakeholders: Communication and consultation help internal stakeholders, such as employees and management, to understand the risks that the organization faces. This involves providing information about the nature of risks, potential impacts, and the likelihood of occurrence.
   • External Stakeholders: External parties, including customers, suppliers, and regulators, benefit from understanding the risks that may affect them or the services/products they provide.
2. Basis of Decision-Making: Communication ensures that stakeholders are aware of the factors considered in the decision-making process related to risk management. This includes the methodologies used for risk assessment, the criteria for risk evaluation, and the rationale behind risk treatment decisions.
3. Reasons for Actions: Stakeholders need to comprehend why specific actions are required to address identified risks. Clear communication provides insights into the logic behind risk mitigation strategies, control measures, or other actions taken to manage risk. External stakeholders, such as regulatory bodies or customers, may need to understand the organization’s commitment to compliance and risk mitigation efforts.
4. Informed Decision-Making: The ultimate goal is to enable stakeholders to make informed decisions based on a thorough understanding of the risks involved. This is particularly important for senior management, as well as for external parties making decisions related to their engagement with the organization.
5. Enhancing Risk Culture: Effective communication and consultation contribute to building a strong risk culture within the organization. When stakeholders understand the risks and the decision-making processes, they are more likely to actively engage in risk management efforts and contribute to a resilient organizational culture.
6. Building Trust: Transparent communication and consultation build trust among stakeholders. When stakeholders have confidence in the organization’s ability to identify, assess, and manage risks, it fosters a positive relationship and enhances the overall reputation of the organization.

Communication seeks to promote awareness and understanding of risk, whereas consultation involves obtaining feedback and information to support decision-making.

while communication is about disseminating information to enhance awareness and understanding of risk, consultation involves a more collaborative process of gathering feedback and information from stakeholders. Both communication and consultation are integral components of a comprehensive risk management strategy, working together to ensure that stakeholders are not only informed about risks but also actively engaged in the decision-making processes that drive effective risk management within the organization. Let’s elaborate on these two key aspects:

1. Communication:
   • Objective: The primary goal of communication is to promote awareness and understanding of risk throughout the organization and among relevant stakeholders.
   • Focus: Communication focuses on conveying information about the nature of risks, potential impacts, likelihood of occurrence, and the organization’s risk management processes and strategies.
   • Key Elements: It involves the clear and effective dissemination of information regarding risks, risk assessments, and risk management decisions.
   • Audience: The audience includes both internal and external stakeholders, such as employees, management, customers, suppliers, regulatory bodies, and other relevant parties.
2. Consultation:
   • Objective: Consultation, on the other hand, is a more interactive process that seeks to obtain feedback and information from stakeholders to support decision-making related to risk management.
   • Focus: The focus of consultation is on engaging stakeholders in discussions, seeking their perspectives, insights, and input on identified risks, potential mitigation strategies, and other relevant aspects.
   • Key Elements: It involves a two-way flow of information, where stakeholders are not just recipients but active contributors, providing their expertise and perspectives.
   • Audience: The audience for consultation may include internal stakeholders such as employees, managers, and external stakeholders like customers, suppliers, and other partners.

Promoting awareness and understanding of risk through communication and obtaining feedback and information to support decision-making through consultation are crucial components of effective risk management. Here’s how you can achieve these goals:

Communication to Promote Awareness and Understanding of Risk:

1. Develop Clear and Accessible Communication Materials: Create clear and concise materials that explain different aspects of risk, including potential impacts, likelihood, and mitigation strategies. Use visual aids, infographics, and examples to make complex information more accessible.
2. Tailor Communication to Different Stakeholders: Customize communication materials to suit the needs and interests of various stakeholders, considering factors such as their roles, responsibilities, and levels of expertise.
3. Utilize Multiple Communication Channels: Employ a mix of communication channels, including written documents, presentations, workshops, and digital platforms, to reach a diverse audience. Leverage internal newsletters, company meetings, and training sessions to convey key messages.
4. Provide Training and Awareness Programs: Conduct training sessions to educate employees and stakeholders about risk management principles, processes, and the importance of their role in managing risks.
5. Establish a Regular Communication Schedule: Implement a consistent and regular communication schedule to keep stakeholders informed about changes in the risk landscape, updates to risk assessments, and relevant organizational decisions.
6. Encourage Two-Way Communication: Create opportunities for stakeholders to ask questions, seek clarification, and provide feedback. Foster an open and transparent culture where communication is not just one-way but involves active engagement.

Consultation to Obtain Feedback and Information for Decision-Making:

1. Identify Key Stakeholders: Determine the stakeholders who have valuable insights into specific risks and can provide meaningful input. Consider internal departments, external partners, customers, and regulatory bodies.
2. Define Clear Objectives for Consultation: Clearly articulate the purpose of the consultation, specifying the information or feedback needed and the decision-making processes it will support.
3. Use Structured Consultation Processes: Design structured consultation processes that facilitate the gathering of targeted information. Incorporate methods such as surveys, focus groups, workshops, or interviews, depending on the nature of the information sought.
4. Engage Stakeholders Early and Often: Involve stakeholders in the decision-making process from the early stages of risk identification and assessment. Seek continuous feedback throughout the risk management lifecycle.
5. Provide Adequate Information: Ensure that stakeholders have the necessary information to make informed contributions during consultations. Share relevant data, risk assessments, and other supporting materials.
6. Actively Listen and Respond to Feedback: Actively listen to the feedback and insights provided by stakeholders. Respond transparently, addressing concerns, providing clarifications, and incorporating relevant feedback into decision-making processes.
7. Communicate Decision Outcomes: Communicate the outcomes of the decision-making process to stakeholders, explaining how their input influenced the final decisions. Reinforce the importance of stakeholder contributions to the organization’s risk management efforts.

By combining effective communication strategies to raise awareness with structured consultation processes to gather feedback, organizations can foster a collaborative approach to risk management, ensuring that decisions are well-informed and supported by the insights of relevant stakeholders.

Close coordination between the two should facilitate factual, timely, relevant, accurate and understandable exchange of information, taking into account the confidentiality and integrity of information as well as the privacy rights of individuals.

Close coordination between communication and consultation processes is essential for facilitating a factual, timely, relevant, accurate, and understandable exchange of information in the context of risk management. Here are key considerations to ensure the effectiveness of this coordination:

1. Integrated Communication and Consultation Plans: Develop integrated plans that outline how communication and consultation activities will work together seamlessly. Ensure that these plans align with the overall risk management strategy and objectives.
2. Establish Common Objectives: Clearly define common objectives that both communication and consultation aim to achieve in the context of risk management. Ensure that both processes contribute to a shared understanding of risks and decision-making.
3. Consistent Messaging: Maintain consistency in the messaging across communication and consultation activities to avoid confusion. Ensure that the information shared aligns with the organization’s risk narrative and supports the decision-making processes.
4. Timely Information Flow: Establish mechanisms for timely sharing of information between communication and consultation efforts. Coordinate schedules to ensure that stakeholders receive relevant information when needed, especially during critical decision points.
5. Confidentiality and Integrity: Implement measures to protect the confidentiality and integrity of sensitive information related to risk management. Clearly communicate the boundaries and limitations regarding the sharing of certain information to maintain trust.
6. Privacy Rights Consideration: Respect and uphold the privacy rights of individuals when communicating and consulting on risk-related matters. Clearly communicate how personal information will be handled and ensure compliance with relevant privacy regulations.
7. Feedback Loop: Establish a feedback loop between communication and consultation processes to address any discrepancies or misunderstandings. Use feedback from both processes to refine messaging and improve the effectiveness of future communication and consultation activities.
8. Training and Awareness Programs: Ensure that employees involved in communication and consultation are adequately trained to understand the principles of risk management. Promote awareness of the importance of coordinated efforts in maintaining the integrity and effectiveness of information exchange.
9. Technology Integration: Leverage technology solutions that facilitate seamless integration between communication and consultation efforts. Use collaborative platforms and tools to streamline information sharing and feedback collection.
10. Regular Coordination Meetings: Schedule regular coordination meetings between communication and consultation teams to discuss ongoing activities, challenges, and opportunities for improvement. Foster a collaborative culture that encourages cross-functional communication and coordination.

By prioritizing these considerations, organizations can establish a harmonious relationship between communication and consultation processes. This not only ensures the exchange of high-quality information but also enhances the overall effectiveness of risk management efforts.

Communication and consultation with appropriate external and internal stakeholders should take place within and throughout all steps of the risk management process.

By integrating communication and consultation at each step, organizations can ensure that risk management becomes a collaborative and dynamic process, fostering a culture of continuous improvement and adaptability to changing circumstances. This approach enhances the organization’s ability to identify, assess, and respond to risks effectively. Integrating these processes throughout all steps of the risk management lifecycle ensures that stakeholders are informed, engaged, and actively contribute to decision-making. Here’s how communication and consultation can be embedded at each stage:

1. Establishing the Context (Step 1):
   • Communication: Communicate the overall organizational context, including mission, values, and external factors influencing the risk landscape. Share information about the risk management framework, policies, and objectives.
   • Consultation: Consult with key stakeholders to gather insights into the external and internal context that may impact the organization’s objectives. Seek input on the identification of relevant risks and opportunities.
2. Risk Assessment (Step 2):
   • Communication:Communicate the results of risk assessments, including identified risks, their potential impacts, and likelihood.Share information about risk appetite and tolerance levels.
   • Consultation:Engage relevant stakeholders in discussions about the assessment criteria and assumptions used in the risk assessment.Seek expert input to enhance the accuracy and comprehensiveness of risk assessments.
3. Risk Treatment (Step 3):
   • Communication: Clearly communicate the selected risk treatment strategies and the reasoning behind them. Share information about the resources allocated for risk mitigation activities.
   • Consultation: Consult with stakeholders to gather feedback on proposed risk treatment measures. Engage in discussions about the feasibility and effectiveness of different risk mitigation options.
4. Risk Monitoring and Review (Step 4):
   • Communication: Communicate the ongoing status of risk mitigation efforts and any changes in the risk landscape. Share regular updates on the effectiveness of implemented risk treatments.
   • Consultation: Actively consult with stakeholders to obtain feedback on the performance of risk controls. Seek insights from internal and external experts regarding emerging risks or changes in the business environment.
5. Communication and Reporting (Step 5):
   • Communication: Communicate comprehensive risk reports to internal and external stakeholders. Ensure that reports are clear, accurate, and aligned with the organization’s risk communication strategy.
   • Consultation: Facilitate discussions with key stakeholders to gather feedback on risk reports. Engage in consultation to address any concerns or questions raised by stakeholders.
6. Review and Improvement (Step 6):
   • Communication: Communicate the outcomes of the risk management review process, including lessons learned and improvements made.Share information about any adjustments to the risk management framework.
   • Consultation: Consult with stakeholders to gather insights on the effectiveness of the risk management process. Seek input on areas for improvement and adjustments to risk management practices.

Communication and consultation aims to bring different areas of expertise together for each step of the risk management process.

This statement accurately emphasizes the collaborative and interdisciplinary nature of communication and consultation in the context of the risk management process. Bringing together different areas of expertise is crucial for obtaining a comprehensive understanding of risks, making informed decisions, and effectively managing the overall risk landscape.By integrating communication and consultation at every step, organizations can harness the collective knowledge and expertise of diverse stakeholders, fostering a holistic and effective approach to risk management. This collaborative effort enhances the organization’s ability to identify, analyze, and respond to risks in a way that considers the full spectrum of expertise within the organization. Here’s how communication and consultation contribute to integrating diverse expertise at each step of the risk management process:

1. Establishing the Context (Step 1):
   • Communication: Facilitates the sharing of organizational goals, values, and external factors influencing the risk environment. Helps convey the overall organizational context to stakeholders with varied expertise.
   • Consultation: Engages different stakeholders to gather diverse perspectives on the internal and external factors shaping the risk landscape. Seeks input from subject matter experts to identify and assess risks relevant to their domains.
2. Risk Assessment (Step 2):
   • Communication: Communicates the results of risk assessments, ensuring that stakeholders with different expertise levels understand the identified risks and their implications. Facilitates the exchange of information about risk assessment methodologies and criteria used.
   • Consultation: Involves experts from relevant fields in the assessment process to contribute specialized knowledge. Facilitates discussions among experts to ensure a comprehensive understanding of complex risks.
3. Risk Treatment (Step 3):
   • Communication: Conveys the selected risk treatment strategies and the reasoning behind them to diverse stakeholders. Ensures clear communication of the resources allocated for risk mitigation activities.
   • Consultation: Engages experts with specific knowledge in risk mitigation to provide input on the feasibility and effectiveness of proposed treatments. Facilitates discussions to address potential challenges and optimize risk treatment approaches.
4. Risk Monitoring and Review (Step 4):
   • Communication: Communicates ongoing updates on the status of risk mitigation efforts to stakeholders with diverse expertise. Facilitates the sharing of information about changes in the risk landscape.
   • Consultation: Actively involves experts in monitoring risk controls to ensure their effectiveness. Engages specialists to analyze data and provide insights into emerging risks or changes in the business environment.
5. Communication and Reporting (Step 5):
   • Communication: Communicates comprehensive risk reports to stakeholders, ensuring accessibility and clarity for various audiences. Facilitates the exchange of information between different areas of the organization.
   • Consultation: Involves subject matter experts in the review of risk reports to ensure accuracy and relevance. Encourages discussions to address any technical questions or concerns raised by experts.
6. Review and Improvement (Step 6):
   • Communication: Communicates the outcomes of the risk management review process and lessons learned. Shares information about improvements made to the risk management framework.
   • Consultation: Engages experts and stakeholders in discussions about areas for improvement in the risk management process. Seeks input on adjustments to practices based on evolving expertise and external factors.

Communication and consultation aims to ensure that different views are appropriately considered when defining risk criteria and when evaluating risks.

This statement underscores a crucial aspect of communication and consultation in the risk management process—ensuring the inclusion of diverse perspectives when defining risk criteria and evaluating risks.By integrating communication and consultation into the process of defining risk criteria and evaluating risks, organizations can benefit from a more comprehensive and inclusive approach to risk management. This collaborative effort ensures that a broad spectrum of perspectives is considered, leading to a more robust and effective risk management strategy. Here’s how effective communication and consultation contribute to this goal:

1. Defining Risk Criteria:
   • Communication: Facilitates the sharing of information about the organization’s risk management framework, including criteria used for risk assessment. Ensures that stakeholders are aware of the factors considered when defining risk criteria.
   • Consultation: Engages stakeholders from various departments, levels, and areas of expertise to gather input on the definition of risk criteria.Encourages discussions to ensure that diverse perspectives and insights contribute to the establishment of relevant and comprehensive criteria.
2. Evaluating Risks:
   • Communication: Communicates the outcomes of risk assessments, including identified risks, their potential impacts, and likelihood. Provides information on how risks are evaluated within the established criteria.
   • Consultation: Actively involves stakeholders in the evaluation process, seeking their perspectives on the significance and priority of identified risks. Facilitates discussions to consider different viewpoints and interpretations of risk factors.
3. Setting Risk Tolerance and Appetite:
   • Communication: Clearly communicates the organization’s risk tolerance and appetite to stakeholders. Provides information on the acceptable level of risk exposure based on organizational objectives.
   • Consultation: Engages key stakeholders, including senior management and relevant experts, to determine and refine risk tolerance levels. Encourages discussions on how different parts of the organization interpret and apply risk tolerance criteria.
4. Identifying Emerging Risks:
   • Communication: Facilitates the dissemination of information about emerging trends, changes in the business environment, and potential new risks. Ensures that stakeholders are aware of the need to stay vigilant for emerging risks.
   • Consultation: Engages experts and relevant stakeholders to actively identify and assess emerging risks. Encourages open discussions on the potential impact of emerging risks and how they align with existing risk criteria.
5. Ensuring Cultural and Contextual Relevance:
   • Communication: Communicates the organizational culture and context that may influence risk perceptions and responses. Facilitates the understanding of how cultural factors may impact the interpretation of risk.
   • Consultation: Involves stakeholders with diverse cultural backgrounds and perspectives to ensure that risk criteria are culturally sensitive. Encourages open dialogue to capture different cultural interpretations of risk within the organization.
6. Continuous Improvement:
   • Communication: Communicates the outcomes of the risk management review process and lessons learned. Shares information about adjustments made to risk criteria based on experience.
   • Consultation: Engages stakeholders in discussions about continuous improvement in risk criteria. Encourages feedback on the effectiveness of existing criteria and suggestions for refinement.

Communication and consultation aims to provide sufficient information to facilitate risk oversight and decision-making.

By aligning communication and consultation efforts with the needs of risk oversight bodies and decision-makers, organizations can enhance their ability to navigate the complexities of the risk landscape effectively. These processes ensure that decision-makers have the information and insights necessary to make informed choices, and that risk oversight bodies are well-informed about the organization’s risk exposure and risk management strategies.Here’s how these processes contribute to this aim:

1. Risk Oversight:

• Communication:
  • Regular Reporting: Provides regular and comprehensive risk reports to stakeholders, including leadership, board members, and relevant oversight bodies.
  • Key Metrics and Indicators: Communicates key risk metrics and indicators to facilitate a high-level understanding of the risk landscape.
  • Emerging Issues: Communicates information about emerging risks and issues that may require attention and oversight.
• Consultation:
  • Strategic Input: Engages stakeholders in strategic discussions to gather their input on overall risk management strategies and priorities.
  • Feedback Loop: Establishes a feedback loop where oversight bodies can provide insights and recommendations for refining risk management practices.

2. Decision-Making:

• Communication:
  • Clarity on Risk Context: Provides clear communication on the context of risks, including potential impacts, likelihood, and relevance to organizational objectives.
  • Decision-Relevant Information: Ensures that decision-makers receive the necessary information to make informed choices regarding risk treatment and mitigation strategies.
  • Scenarios and Consequences: Communicates various risk scenarios and potential consequences to aid decision-makers in understanding the range of possibilities.
• Consultation:
  • Stakeholder Input: Actively seeks input from stakeholders in decision-making processes related to risk treatment and response strategies.
  • Expert Opinions: Engages subject matter experts to provide insights and expertise that can inform decision-makers about the technical aspects of certain risks.
  • Consensus Building: Facilitates consultations to build consensus among diverse stakeholders, ensuring that decisions align with organizational objectives.

3. Strategic Planning:

• Communication:
  • Alignment with Strategy: Communicates how risk management aligns with and supports the overall organizational strategy.
  • Long-Term Risks: Provides information on long-term strategic risks that may impact the organization’s objectives over time.
• Consultation:
  • Stakeholder Perspectives: Engages stakeholders in strategic planning sessions to understand their perspectives on key risks and opportunities.
  • Scenario Planning: Utilizes consultation to conduct scenario planning, considering a range of potential future risks and their implications.

4. Crisis Management:

• Communication:
  • Emergency Communication Plans: Communicates emergency communication plans and protocols in the event of a crisis.
  • Real-Time Updates: Provides real-time updates during a crisis, ensuring stakeholders are informed about the situation and response efforts.
• Consultation:
  • Crisis Response Strategy: Engages key stakeholders in consultation to formulate effective crisis response strategies.
  • Continuous Improvement: Uses consultation post-crisis to gather feedback and improve future crisis management plans.

5. Regulatory Compliance:

• Communication:
  • Regulatory Updates: Communicates updates on regulatory requirements and compliance obligations.
  • Documentation: Ensures proper documentation and communication of the organization’s commitment to compliance.
• Consultation:
  • Legal and Compliance Expertise: Engages legal and compliance experts in consultations to ensure that risk management practices align with regulatory expectations.
  • Feedback from Regulatory Bodies: Establishes channels for consultation with regulatory bodies to address inquiries and provide necessary information.

6. Learning and Improvement:

• Communication:
  • Lesson Learned Reports: Communicates reports on lessons learned from past incidents and risk events.
  • Continuous Improvement Initiatives: Shares information about ongoing continuous improvement initiatives related to risk management.
• Consultation:
  • Feedback Loops: Establishes consultation processes to gather feedback from stakeholders on the effectiveness of risk management practices.
  • Collaborative Improvement: Engages stakeholders in collaborative efforts to improve risk management processes and outcomes.

Communication and consultation aims to build a sense of inclusiveness and ownership among those affected by risk.

This statement aptly captures an essential aspect of communication and consultation in the realm of risk management. Fostering a sense of inclusiveness and ownership among those affected by risk is crucial for creating a collaborative risk-aware culture within the organization. Here’s how communication and consultation contribute to achieving this aim:

1. Inclusiveness:

• Communication:
  • Transparency: Communicates openly about identified risks, risk assessment processes, and risk management strategies, fostering a transparent environment.
  • Inclusive Language: Uses inclusive language to ensure that communication is accessible to a diverse audience, irrespective of roles or levels within the organization.
• Consultation:
  • Stakeholder Engagement: Actively engages stakeholders from various departments, levels, and areas of expertise in the risk management process.
  • Diverse Perspectives: Seeks input from a broad range of stakeholders to capture diverse perspectives and experiences related to specific risks.

2. Ownership:

• Communication:
  • Clarity on Responsibilities: Clearly communicates the roles and responsibilities of different stakeholders in managing specific risks.
  • Highlighting Contributions: Recognizes and communicates the contributions of individuals and teams in successful risk mitigation efforts.
• Consultation:
  • Collaborative Decision-Making: Involves stakeholders in the decision-making process related to risk treatment, fostering a sense of ownership in the chosen strategies.
  • Feedback Mechanisms: Establishes mechanisms for stakeholders to provide feedback on risk management processes, promoting a sense of accountability.

3. Empowerment:

• Communication:
  • Educational Initiatives: Provides educational materials and resources to empower individuals and teams to understand and manage risks within their areas of responsibility.
  • Clear Communication of Risk Appetite: Communicates the organization’s risk appetite, empowering stakeholders to make risk-aware decisions aligned with organizational objectives.
• Consultation:
  • Training and Development: Engages in consultation to identify training needs and develop educational programs to enhance risk management capabilities.
  • Empowering Decision-Makers: Consults with decision-makers to ensure they feel empowered to make risk-informed choices within their roles.

4. Cultural Integration:

• Communication:
  • Integration of Risk Culture: Communicates the importance of a risk-aware culture and integrates risk considerations into the organization’s overall culture.
  • Storytelling: Uses storytelling to illustrate the impact of risk management efforts, making risk concepts relatable and engaging.
• Consultation:
  • Cultural Assessments: Engages in consultation to assess and understand the existing organizational culture, identifying areas where a risk-aware culture can be further integrated.
  • Inclusive Decision-Making Practices: Promotes inclusive decision-making practices in consultations, ensuring that diverse voices contribute to shaping the organizational risk culture.

5. Responsive Communication:

• Communication:
  • Proactive Communication: Proactively communicates changes in the risk landscape, allowing stakeholders to adapt to evolving circumstances.
  • Crisis Communication: Provides timely and clear communication during crises, demonstrating a commitment to keeping stakeholders informed.
• Consultation:
  • Listening and Addressing Concerns: Actively listens to concerns and feedback during consultations and takes appropriate actions to address them.
  • Adaptation to Feedback: Uses consultation as a mechanism for organizational learning and adapts risk management practices based on stakeholder input.

6. Building Trust:

• Communication:
  • Consistent Messaging: Ensures consistency in risk communication, building trust among stakeholders.
  • Honest Communication: Maintains honesty and integrity in communication to establish a foundation of trust.
• Consultation:
  • Open Dialogue: Fosters open and honest dialogue during consultations, creating an environment where stakeholders feel comfortable expressing their views.
  • Addressing Concerns: Actively addresses concerns raised during consultations, reinforcing trust in the organization’s commitment to risk management.

By embedding inclusiveness and ownership in communication and consultation practices, organizations can cultivate a resilient and collaborative approach to risk management. This, in turn, contributes to a culture where individuals feel empowered, engaged, and collectively responsible for managing risks that impact the organization.

Documents and Records required

1. Documented Information Establishing Communication and Consultation Processes:
   • Communication and Consultation Plan:
     • Purpose: Outlines the strategy and approach for communication and consultation in the risk management process.
     • Content: Describes channels, stakeholders involved, frequency of communication, and methods of consultation.
2. Records of Stakeholder Identification:
   • Stakeholder Register:
     • Purpose: Documents the identification of internal and external stakeholders relevant to the risk management process.
     • Content: Includes stakeholder names, roles, interests, and potential influence on or impact from risk.
3. Records of Stakeholder Communication:
   • Stakeholder Communication Records:
     • Purpose: Documents communication with stakeholders at various stages of the risk management process.
     • Content: Includes meeting minutes, emails, or other records of communication.
4. Records of Consultation:
   • Consultation Records:
     • Purpose: Documents the engagement and consultation process with stakeholders.
     • Content: Describes topics discussed, feedback received, and any changes made based on consultation.
5. Records of Risk Information Dissemination:
   • Risk Information Dissemination Records:
     • Purpose: Documents how risk information is communicated within the organization.
     • Content: Records of reports, presentations, or other methods used to disseminate risk information.
6. Records of Decision-Making:
   • Decision-Making Records:
     • Purpose: Documents decisions made during the risk management process.
     • Content: Records of decisions, rationale, and any actions assigned for implementation.
7. Records of Feedback Mechanism:
   • Feedback Mechanism Records:
     • Purpose: Documents the process for receiving and addressing feedback from stakeholders.
     • Content: Records of feedback received, responses provided, and actions taken.
8. Records of Consultation Changes:
   • Change Logs:
     • Purpose: Documents any changes made to the consultation process based on feedback or lessons learned.
     • Content: Log of changes, reasons for changes, and their implications
9. Records of Training and Awareness Programs:
   • Training Records:
     • Purpose: Documents training programs aimed at enhancing stakeholders’ understanding of risk management.
     • Content: Records of training sessions, attendance logs, and materials used.
10. Records of Legal and Regulatory Compliance:
    • Compliance Records:
      • Purpose: Demonstrates adherence to legal and regulatory requirements related to communication and consultation.
      • Content: Records of compliance assessments, legal reviews, and any actions taken to address compliance issues.
11. Records of Communication During Emergencies or Critical Events:
    • Emergency Communication Records:
      • Purpose: Documents communication plans and activities during emergency situations or critical events.
      • Content: Protocols, records, and reports related to emergency communication efforts.
12. Records of Continuous Improvement:
    • Improvement Logs:
      • Purpose: Documents adaptations or improvements made to the communication and consultation processes based on feedback and lessons learned.
      • Content: Records of changes, reasons for changes, and their impact on the risk management process.
13. Records of Communication of Risk Management Outcomes:
    • Outcome Communication Records:
      • Purpose: Documents how the outcomes of the risk management process are communicated to stakeholders.
      • Content: Records of reports, presentations, or other methods used to share risk management results.

Communication and Consultation Procedure in Risk Management

1. Purpose: The purpose of this procedure is to establish a structured approach for effective communication and consultation in the risk management process. The procedure aims to ensure that stakeholders are informed, engaged, and actively contribute to decision-making related to risk management.

2. Scope: This procedure applies to all employees, management, and relevant external stakeholders involved in the risk management process within the organization.

3. Responsibilities:

• Risk Management Team:
  • Oversees the development and implementation of communication and consultation strategies.
  • Ensures that risk information is communicated in a timely and transparent manner.
• Communication Coordinator:
  • Designated individual responsible for coordinating communication efforts.
  • Collaborates with the risk management team to create communication plans and materials.
• Consultation Facilitator:
  • Responsible for coordinating consultation activities.
  • Engages with stakeholders to gather feedback and input on risk-related matters.

4. Communication Process:

• a. Identify Key Messages: – Determine key messages to be communicated, including information about identified risks, risk assessments, and risk management decisions.
• b. Target Audience: – Define the target audience for each communication effort, considering internal and external stakeholders at various levels within the organization.
• c. Communication Channels: – Select appropriate communication channels such as email, intranet, team meetings, and organizational newsletters based on the nature and urgency of the information.
• d. Frequency: – Establish a regular communication schedule to ensure stakeholders receive updates consistently.
• e. Two-Way Communication: – Encourage stakeholders to provide feedback and ask questions, establishing a two-way communication flow.

5. Consultation Process:

• a. Identify Consultation Objectives: – Clearly define the objectives of each consultation, specifying the information or feedback needed.
• b. Stakeholder Identification: – Identify internal and external stakeholders with relevant expertise or interest in the risk management process.
• c. Consultation Methods: – Utilize various consultation methods such as surveys, focus groups, workshops, and interviews, depending on the nature of the information sought.
• d. Feedback Collection: – Actively engage stakeholders in discussions, seeking their input on risk identification, assessment, and treatment strategies.
• e. Integration of Feedback: – Ensure that feedback received is integrated into decision-making processes, demonstrating the organization’s commitment to inclusive decision-making.

6. Coordination and Integration:

• a. Communication and Consultation Calendar: – Develop a calendar that aligns communication and consultation activities with the overall risk management process.
• b. Collaboration Between Roles: – Foster collaboration between the Communication Coordinator and Consultation Facilitator to ensure a cohesive approach.
• c. Feedback Loop: – Establish a feedback loop to address any discrepancies or misunderstandings between communication and consultation efforts.

7. Documentation and Record-Keeping: Maintain documentation of communication plans, consultation activities, and outcomes for future reference and continuous improvement.

8. Training and Awareness: Conduct training sessions to enhance awareness among employees about the importance of communication and consultation in the risk management process.

9. Continuous Improvement: Regularly review and refine communication and consultation procedures based on feedback, lessons learned, and changes in the organizational context.

Communication Matrix for Risk Management

Stakeholder Group	Information Needs	Frequency of Communication	Preferred Communication Channels
Executive Leadership	Strategic risks, high-level risk trends, risk appetite updates	Monthly	Executive meetings, written reports
Risk Management Team	Detailed risk assessments, risk treatment plans, progress updates	Bi-weekly	Team meetings, email updates
Project Managers	Project-specific risks, mitigation strategies, changes in risk status	Weekly	Project meetings, project management software
Department Heads	Department-specific risks, updates on risk mitigation efforts	Monthly	Department meetings, email updates
Employees	General awareness of key risks, changes in organizational risk approach	Quarterly	Company-wide emails, internal newsletters
Regulatory Bodies	Compliance status, updates on risk management processes	As required	Formal reports, regulatory submissions
External Partners (e.g., Suppliers, Clients)	Risks affecting partnerships, contingency plans	As needed	Meetings, contractual communications

Key Elements:

1. Stakeholder Group: Identifies the different groups of stakeholders involved in or affected by the risk management process.
2. Information Needs: Specifies the type of information each stakeholder group requires. This can include specific risks, mitigation strategies, updates on risk assessments, etc.
3. Frequency of Communication: Outlines how often communication should occur with each stakeholder group. This could be daily, weekly, monthly, or as needed.
4. Preferred Communication Channels: Identifies the most effective communication channels for each stakeholder group. This could include meetings, emails, reports, or specific software tools.

Example Scenario:

• Executive Leadership: Monthly updates during executive meetings to provide a high-level overview of strategic risks and trends.
• Risk Management Team: Bi-weekly team meetings to discuss detailed risk assessments, treatment plans, and progress updates.
• Project Managers: Weekly updates during project meetings, using project management software to share project-specific risk information.
• Department Heads: Monthly updates during department meetings to discuss department-specific risks and progress on mitigation efforts.
• Employees: Quarterly company-wide emails and articles in internal newsletters to ensure general awareness of key risks and changes in risk approach.
• Regulatory Bodies: As required, providing formal reports and updates on compliance status and risk management processes.
• External Partners: Communication occurs as needed, using meetings and contractual communications to discuss risks affecting partnerships and contingency plans.

Consultation Register for Risk Management

Date	Stakeholder Group	Purpose of Consultation	Consultation Method	Feedback Received	Actions Taken
2024-03-01	Project Team	Identify project-specific risks	Workshop	Identified potential project risks and mitigation strategies	Updated risk register with new information
2024-03-15	Employees	Introduce changes in risk management approach	Company-wide Announcement	General awareness and understanding of the changes	Conducted training sessions to address questions
2024-04-10	Department Heads	Obtain input on risk tolerance levels	Survey	Varied responses on acceptable risk levels; considered in risk appetite review	Adjusted risk tolerance criteria accordingly
2024-05-05	Regulatory Bodies	Review risk management processes	Meeting	Positive feedback on compliance efforts	Documented feedback for regulatory reporting
2024-06-20	External Partners	Discuss risks affecting partnerships	Conference Call	Shared insights on potential supply chain risks	Integrated partner feedback into risk assessments
2024-07-15	Risk Management Committee	Evaluate effectiveness of risk training	Focus Group	Mixed feedback, some employees seek more hands-on training	Updated training materials and scheduled additional sessions

Key Elements:

1. Date: The date when the consultation activity took place.
2. Stakeholder Group: Identifies the specific group of stakeholders involved in the consultation.
3. Purpose of Consultation: Describes the reason or objective of the consultation activity.
4. Consultation Method: Specifies the method used for the consultation (e.g., workshop, survey, meeting, focus group).
5. Feedback Received: Summarizes the key feedback or input received from stakeholders during the consultation.
6. Actions Taken: Documents any actions or decisions resulting from the consultation, including changes to risk management strategies, updates to documentation, or other relevant adjustments.

Example Scenario:

• Date: 2024-03-01
• Stakeholder Group: Project Team
• Purpose of Consultation: Identify project-specific risks
• Consultation Method: Workshop
• Feedback Received: Identified potential project risks and mitigation strategies.
• Actions Taken: Updated the risk register with new information.
• Date: 2024-04-10
• Stakeholder Group: Department Heads
• Purpose of Consultation: Obtain input on risk tolerance levels
• Consultation Method: Survey
• Feedback Received: Varied responses on acceptable risk levels; considered in risk appetite review.
• Actions Taken: Adjusted risk tolerance criteria accordingly.