Improve communication or risk isolation, experts warn delegates

Communication is the number one skill for a risk manager particularly as the scope of the role widens. But even though risk managers are increasingly aware of the value of communication there are still ‘enormous’ grounds for it to develop and improve, according to Karin Klerfelt, Communication Consultant at Swedish firm Astarcan AB.

Mrs. Klerfelt, who held a workshop on the subject at the Swedish Risk Management Association’s (SWERMA) Risk Forum last month, says that risk managers can easily learn and follow simple principles to help them develop this skill that is now vital in a global economy.

“I would say communication is the number one skill for risk managers because it doesn’t matter what knowledge you have if you then don’t have the skills to communicate that knowledge and get people to listen to you and get them to do what you want,” Mrs. Klerfelt told Commercial Risk Europe.

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“People are getting better at it now and it is more focused than it was a few years ago. But, there could be so much more done and there are still enormous grounds for improvement,” she added.

“As the risk manager role becomes more developed, far-ranging and enterprise-wide it is an increasingly important skill. And, with a lot of skilled people out there nowadays, it really can make you stand out,” Mrs. Klerfelt continued.

During the workshop Mrs. Klerfelt suggested three simple steps that risk managers should follow to facilitate effective communication.

Firstly, risk managers must decide what it is they want to say or what they want to argue for and know exactly what it is they want to be done. Secondly, risk managers must use all the communication skills available and dare to go out ‘on the edge’. Thirdly, risk managers can implement a six-step plan, or model, advocated by Mrs. Klerfelt.

“First, you must have a starting point or issue. Second, you have to research your background. Third, you have to have your opinion or goal, what you want people to do, and that is the main communication issue. Fourth, you need to have your arguments prepared and you should have three, not more or not less. Then you need to consider the arguments of your counterparty and prepare your answers. Finally you have to reach a firm conclusion and be clear about what you want people to do and the action you want taken,” she explained.

Communication is increasingly important in Sweden as its companies compete in a globalised market, explained Mrs. Klerfelt. Swedish companies have traditionally been strong engineers, for example. But, there are now more engineers in China and India and so Swedish companies need to compete in other areas such as communication. “It is a new industry in a new society,” she continued.

Communication is the key skill needed to influence board decisions and now encompasses the new social networking media such as Twitter and Facebook, said Mrs. Klerfelt.

“If you take Twitter as an example you have only 140 characters to make your point and explain your message. To be able to do that you have to train to be a very effective and concise communicator. And, this is the same skill that you need when you address the board or chief executive officer. This is because they don’ have time to listen and they want very short, sharp and understandable messages,” she added.