Do you feel like people don’t take risk assessments seriously?

You're not alone.

Many professionals see them as a tedious box-ticking exercise. But what if you changed your perspective and walked into the room with a different perception?

Think of them as powerful tools to support decisions.

Let's dive in.

The Real Purpose of Risk Assessments

Beyond Compliance

Most people see risk assessments as a compliance or internal policy requirement.

However, their real value lies in providing insights about potential decisions shaping alternate improved outcomes.

They help you understand two key things:

1. What can go wrong that you need to prevent

2. What needs to go right which you must ensure happens.

Informed Decisions

Risk assessments give you a clearer picture of your business landscape. But how?

They highlight areas of concern and opportunity.

Too many times ticking the box does not lead to identifying opportunities or areas where you can double-down.

Prioritising Actions

With risk assessments, you can prioritise actions based on potential impact.

I guarantee you most organisations don’t prioritise the outputs from the risk assessment process including yours.

Next time you complete a risk assessment ensure you're focusing on what's most important and prioritise the actions.

No more guesswork.

Benefits of Integrating Risk Assessments in Decision-Making

Clarity and Focus

Risk assessments bring clarity to complex situations.

They help you focus on what truly matters.

Don’t use it to tick a box but to challenge the decision and improve it.

Resource Allocation

By understanding what can go wrong, you can allocate resources more effectively….

And by understanding what needs to go right, you can allocate resources more effectively.

You'll know where to invest time, money, and effort for maximum benefit.

Risk function adding value

Become a valued contributor to your organisation.

When the Risk team supports the business to make better decisions it enhances the functions reputation.

Actionable Steps

1. Start Early

Incorporate risk assessments at the beginning of your planning process.

Actually challenge the thinking of the planners and decision makers. Could it be better?

2. Use a Standard Framework

Adopt a standard framework for your risk assessments.

Create artefacts so it is repeatable and can be completed at all levels to support decisions.

3. Involve Key Stakeholders

Get input from key stakeholders to ensure all perspectives are considered.

This should not be a Risk team led activity. It needs to be owned by the business with support from Risk.

4. Regular Reviews

Conduct regular reviews of your risk assessments.

The operating environment evolves, and so should your strategies and therefore your risks.

5. Leverage Technology

If your risk management software can’t support this then why do you have it?

Leverage technology (not MS Excel) for consistency and archiving to learn from previous reports.

Risk assessments go to die in MS Excel and MS PowerPoint so be careful.

Mistakes to Avoid

Focusing on negatives

One of the biggest mistakes is ignoring what needs to go right and what opportunities are present.

This can lead to missed opportunities down the line and scrambling to make sure things that need to go right actually do.

Poorly explaining the need

If the business does not understand the need or value of a risk assessment it is on the Risk team.

Risk professionals need to be expert communicators.

Lack of Follow-Up

Risk assessments are not a one-time task.

They require regular follow-up and updates to remain relevant.

Conclusion and Call to Action

Risk assessments are more than just a tick box activity.

They are essential tools that can support your decision-making process.

By integrating them into your strategy, you can make more informed, confident decisions that drive success.

Closing Thoughts

Start viewing risk assessments as your decision-making allies. Pull together an approach and execute. Make sure it can be executed all levels of your organisation.

Now, what would you do differently and what help do you need to get there?