Risk management can be a complicated and complex process: From identifying risks to posing and testing potential solutions to finally implementing them and tracking their effectiveness, a lot of leadership skills come into play. If you play any role in managing risk, here are five critical skills you should be working on to ensure a smooth risk management process:
* Vision: Vision enables you to see the big picture and the small details, understanding the implications of risk and the benefits of rewards. Vision is essential in understanding how specific risk management processes will help the entire business thrive, and it also enables you to home in on novel approaches that may not have been tried before.
* Communication: Good communication skills means you’re able to take an idea and present it clearly to multiple audiences, not only so they understand an idea but so they become inspired by it. Clear communication can also ensure a risk management initiative stays on track and eliminate errors that occur when directives are unclear. And don’t forget: Being a good communicator also means you’re a good listener.
* Conflict resolution: Every team will have some conflict at some point in time, especially when risk is involved. Being able to see both sides of an argument and provide balanced insight that values all input is essential in implementing risk management strategies that work.
* Collaboration: Leaders can take input and advice from other team members without feeling threatened, even when that means letting go of some of their own ideas, and incorporate the best ideas into a cohesive and comprehensive approach to managing risk. They also know when it’s time to look outside the team for additional help.
* Delegation: Likewise, a leader can identify team members and those outside of the team who have specific strengths that can help identify solutions and implement them. Learning to delegate effectively is one of the most difficult leadership skills to acquire, partly because it’s difficult to give up responsibility for a project you’re spearheading. This is one skill where practice will help you to become more adept over time.
Spend some time evaluating your own leadership skills to identify ways you can help manage risk more effectively at your company.