December 21, 2024
Municipal Information Network

Overcoming the Resistance: How to Gain Support for Risk Initiatives

by Rebecca Webb

In the last few years, risk management has become more popular. Risk managers were traditionally purchasers of insurance and the "department of no", but today they are expected to predict and prevent risks.

Risk managers in municipalities have to juggle a huge number of changing factors and stakeholder perspectives. They have to evaluate the risks of the external environment, such as technological and public-related changes, and the internal environment, including employees.

They must also implement risk initiatives to combat these risks and evaluate their effectiveness, all while proving to several different parties that their work is creating results. Even with these high expectations, risk managers often encounter resistance when trying to implement risk initiatives, especially if they require upfront investment.

So how can municipalities gain the support they need to achieve their risk management objectives?

First, the risk manager must have a deep understanding of the value of risk management. When used effectively, risk management can reduce the number of claims and occurrences through trend analysis, which lowers costs. It can also save employees' time and enable them to work on more value-added activities. In order to measure results, it's important to know what specific benefits are required or desired.

Research a potential new risk initiative thoroughly, whether it's a new system, piece of operational equipment, or training method. The risk manager should look for statistics, case studies, or other objective proof that the initiative can achieve the desired benefits within the organization.

Due diligence and a thorough understanding of the change will make it easier to perform the main step of gaining support: communicating a strong business case.

Build the case around the primary values and benefits discovered in step one. It may be particularly helpful to target one specific issue: for example, if the risk manager encounters a high number of trip and falls, they can illustrate how the risk initiative can reduce that risk and its associated costs. Implementing a formal inspection policy of the area in question can remove hazards before somebody gets injured. From there, expand the discussion to other benefits the new method could bring: inspections will also reduce the chance of slip and falls, thereby improving overall safety and reducing claim costs.

Risk managers often need support from a number of areas: executives, legal, IT, and the everyday users. Consider having a separate discussion with each to determine their wants, needs, and concerns.

Executives can be won to the cause by tying the initiative back to the strategic goals of the organization. Is the municipality trying to lower costs, reduce claims, or improve culture? The risk manager should illustrate that it's possible to achieve this goal through the particular initiative.

Legal and IT teams typically need to know that any new initiative complies with internal requirements. This is easy to prove if proper research has already been performed.

As for the main users, explain how the new risk initiative can make their jobs safer, easier, or more meaningful. An example would be the introduction of automated data and trend analysis: employees will no longer need to spend time building reports for managers if they're available at the press of a button. This eliminates a repetitive task and allows them to act on the results of the data.

Throughout all discussions, it's crucial the risk manager emphasizes the need for change. If managers and users don't feel that the risk initiative is urgent enough, they're unlikely to support it. The manager should describe the problems created by the current process, the concrete benefits of fixing it, and demonstrate that there is a well-thought out implementation plan in place, including training for new roles. This will ensure each person knows exactly what is expected of them and when it will occur.

There is almost always resistance during the discussion and implementation of any significant change. Through empathetic communication and demonstration of real value, this can be bypassed. It's usually a significant help if the risk manager can gain the support of one key stakeholder who can champion the idea.

Finally, realize that any risk initiative is a process to regularly revisit and sometimes modify. Benefits may not always be instant. Stress this to those who ask for a quick ROI, and be prepared to give regular updates on the success of the initiative.

Risk initiatives are not only necessary, they can turn a risk department from a cost-center into a profit-center. After gaining the necessary support, a risk manager can implement their winning strategy.


Rebecca Webb
Rebecca Webb is a writer and marketing specialist at ClearRisk, a provider of cloud-based risk and claims management software solutions. ClearRisk has been providing innovative solutions to customers within all industries for 12 years, reducing their total cost of organizational risk and insurance programs by streamlining data management and reporting; enabling a shift in focus to high-value, high-return initiatives.