The Importance of Storytelling for Risk Professionals
In many organizations, risk professionals are viewed simply as “the insurance buyers,” but that’s a common misconception. If risk professionals wish to change that perception, they might consider cultivating their storytelling skills to be able to better communicate about their risk initiatives.
It’s human nature to respond with interest to a good story. If risk professionals can master how to be exceptional storytellers, they can provide context and convey the potential consequences of different risks in a way that is relatable and easy to understand. Stories make it easy for stakeholders, such as C-suite executives, employees, shareholders, partners, and more, to understand how risks can impact the overall organization. This will allow them to create a shared understanding of risks and help others make the most informed decisions.
Undoubtedly, storytelling is one of the most essential skills risk professionals can develop. If utilized to its full potential, risk professionals can get the most impact out of their data, create a shared understanding of risks among different stakeholders, and become thought leaders within their organizations.
Storytelling Tips for Risk Professionals:
1. Know your audience.
Before crafting the story, risk professionals need to take the time to fully understand their audience. Presenting something to the executive team versus an underwriter is significantly different.
Here are some things to consider when thinking about the audience:
Are they part of the executive team, someone from another department, or someone outside of the organization altogether?
What are their biggest concerns? What matters to them?
What language do they speak (Finance, Operations, HR, etc.)?
What’s their understanding of risk management?
Once the risk professional has the answers to these questions, they will have a better idea of what resonates with the audience and can begin to tailor the story to the specific audience. It’s important to personalize the story and make it seem like the story was meant for the intended audience. Risk professionals should spend some time covering what they want the audience to walk away with at the end of the story. By truly understanding the audience, they can deliver a story that’s impactful and relevant.
2. Keep it simple.
Working in the world of insurance, risk professionals are often caught up in their own lingo. However, most people don’t speak or understand insurance talk. If risk professionals don’t simplify what they’re talking about, they run the risk of losing their audience early on, or their stories won’t hold any weight. Avoid using jargon or technical language at all costs. It may confuse the audience, or they might zone out altogether. Instead, use clear, concise language that’s easy to understand. If there’s a complex topic that needs to be conveyed, risk professionals can try to break the topic down into bite-sized chunks that are easily digestible.
3. Use Data and Visuals.
Risk professionals can supplement their storytelling by presenting data and visuals to support their message. Many people are visual learners, and some may want to see the indisputable numbers behind it all. Consider pulling in data and organizing it into graphs, charts, and diagrams to make it more appealing and supportive of the story being told. Data will allow the audience to grasp the whole picture easily and to understand the weight of the risks. It also gives the story more credibility.
4. Make a connection to bigger business implications.
To make a story compelling, risk professionals need to think about the story in the context of the organization’s goals. For example, how are the associated risks obstacles to the company’s goals? Risk professionals need to think about “the why,” “so what,” “what needs to happen,” and “what’s in it for the audience.” They can also use real-life examples to make the story more relatable and memorable. Draw on incidents or other relevant events that illustrate the risks. It’s also important to focus more on the outcomes than the problem itself.
5. Be passionate!
When telling a story, risk professionals need to let their passion shine through. If the story is delivered in a matter-of-fact, dry manner with little passion, then the audience might feel like it’s too boring, or they will question why they should care if even the risk professional doesn’t even seem like they care about the issue themselves. Bring passion into the delivery of the story; it makes all the difference!
6. Make your presentation exciting and interactive.
There are a couple of ways risk professionals can make their presentations more exciting and interactive. One way is by borrowing key elements of storytelling, such as by creating suspense or surprise. For example, they can describe a near-miss incident and ask the audience to consider what could have happened if things had gone differently. By doing this, risk professionals can better engage their audience and make them feel like they play a significant role in determining the outcome of the story.
7. End with a clear call to action.
A story will only be worthwhile if the audience leaves with something in the end. This is why risk professionals need to end their stories with a clear call to action on what to do next. The call to action should outline what steps should be taken to address the risks identified. Once the story is wrapped up, the audience should leave feeling empowered about what’s to come.
Most risk professionals are competent risk practitioners who excel at their jobs. But if their work doesn’t get the visibility it deserves, their efforts are for naught. In today’s ever-changing business environment, risk professionals need to develop their storytelling skills so they can have effective cross-functional communication, build organizational leadership, bring attention to their risk programs, and assist the organization in making the soundest decisions.
Riskworld 2023
If you’re going to this year’s Riskworld in Atlanta, Georgia, be sure to check out the "Storytelling for Risk Management Professionals" session on May 3rd from 10:45-11:45 AM, where Scott Ritto and Michelle Bennett will talk about how to cultivate storytelling skills to communicate your risk management initiatives and build organizational leadership.