Risk management
Risk management

Start this free course now. Just create an account and sign in. Enrol and complete the course for a free statement of participation or digital badge if available.

Free course

Risk management

2 Working with stakeholders

Effective risk management is about delivering reliable, timely and useful information that helps improve decisions. A prerequisite is therefore to understand who the decision makers are and what information they need.

The board is one group that plays an important role in setting the tone for how risk is managed but other stakeholders may play an equally important role and this will to a large extent depend on the business in question. The tone for risk may be set by regulators, such as the US Food and Drug Administration (FDA) in pharmaceuticals, the Federal Reserve (the US central bank), the UK Financial Conduct Authority (FCA) or European Central Bank (ECB) for banks, or by governments, non-governmental organisations (NGOs) or simply by industry norm.

A stakeholder map is a useful tool that can be applied to identify stakeholders and understand the most appropriate way to engage with them. This is typically done using a two-by-two matrix with ‘Influence’ on one axis and ‘Power’ on the other, both ranging from ‘high’ to ‘low’. These are sometimes undertaken alongside a communication strategy known as a ‘RACI’ (responsible, accountable, consulted and informed) and with richer forms of communication (such as one-to-one and face-to-face) used with groups who have ‘high’ Power and Influence, whilst more generic forms of communication (such as newsletters or web pages) used with groups with lower levels of Power and Influence.

Activity 1 Communication routes

Timing: Allow approximately 10 minutes

Consider different communication routes for the different ‘risk audiences’.

  • Safety risk: There is a risk around cut hands from handling sharp metal chips.
  • Finance risk: There is a risk around ABC within some sales activity.
  • Legal risk: There is a risk personal data could be stolen (cyber attack).
  • Business continuity: There is a risk to production if the factory is lost due to a fire.
Active content not displayed. This content requires JavaScript to be enabled.
Interactive feature not available in single page view (see it in standard view).
Active content not displayed. This content requires JavaScript to be enabled.
Interactive feature not available in single page view (see it in standard view).
Active content not displayed. This content requires JavaScript to be enabled.
Interactive feature not available in single page view (see it in standard view).
Active content not displayed. This content requires JavaScript to be enabled.
Interactive feature not available in single page view (see it in standard view).
RM_1

Take your learning further

Making the decision to study can be a big step, which is why you'll want a trusted University. The Open University has 50 years’ experience delivering flexible learning and 170,000 students are studying with us right now. Take a look at all Open University courses.

If you are new to University-level study, we offer two introductory routes to our qualifications. You could either choose to start with an Access module, or a module which allows you to count your previous learning towards an Open University qualification. Read our guide on Where to take your learning next for more information.

Not ready for formal University study? Then browse over 1000 free courses on OpenLearn and sign up to our newsletter to hear about new free courses as they are released.

Every year, thousands of students decide to study with The Open University. With over 120 qualifications, we’ve got the right course for you.

Request an Open University prospectus371