NSW Risk Engineering Society & Risk Management Institution of Australasia (NSW Chapter) Perception Risk and Communication Introduction to Rick Stejer http://au.linkedin.com/in/stejer My career interests • Business Consulting • Building teams • Training and assessment • Designing blended learning My professional interests • Building training courses about the 'best practices' we use to engage people in Transformation Programs and Projects Quirky interest • I developed and contrasted ‘Cooperative Competency’ in IT project teams working in telecommunications and banking for my doctoral thesis Presentation overview Objective To clarify how Communication standards can be practically applied to help Risk Managers assess risks. Agenda Perceptions and interpretation of risks • Overview of the International Standard, ISO 31000:2009 • Challenges and biases of miscommunication • Not as objective as we think - the Fundamental Attribution Error Growing your repertoire of communication styles Maturity Assessment, an opportunity to resurrect? Overview of ISO 31000:2009 Categories of risk 1. External risks 1. Directive 2. Reflective 3. Supportive 4. Emotive 2. Organisation risk Risk assessment Risk identification Risk analysis Risk evaluation Monitoring and review Communication styles Communication and consultation Establish the context Risk treatment ISO 31000:2009, Figure 1, page VI 3. Project (change) risk This model is for managing risk, not for discerning risk Challenges and biases of miscommunication Key challenge toward good communication • “A real challenge ... is [to know] how to influence people’s perceptions, ... so that they are motivated to select ... relevant information at appropriate times.” (Glendon et al., 2006, p. 79) Key hurdle against miscommunication • Biases (perceptions) are our ‘blinkers’, our ‘feelings’ and ‘gut reactions’, that prevent s our objectivity • Biases influence the priority we place on information or experience (Australian Encyclopedic Dictionary) Getting along, getting it wrong Risks emanating from defensive communication Self-serving bias Adjustment Severity bias Representativeness False consensus Small numbers Situation bias Anchoring Correlation bias Over-confidence Negative weighing Hindsight Availability (Glendon et al, p 89-94) Not as objective as we think – the Fundamental Attribution Error When assessing other people’s actions, we overemphasise personal characteristics to explain risk incidences • Their failure is due to incompetency and/or poor work ethic • Their success is due to good luck and/or accessibility of better skills, information, favour When assessing our actions, we overemphasise circumstances to explain risk incidences • Our failure is due to bad luck and/or external constraints • Our success is due to competency and/or good work ethic (Glendon et al, p 88 ) Attribution errors our work, everyday A PM should delay giving the customer bad news about a project until after there is a clear resolution & recommendation. (LinkedIn poll, Jon Herbold, 4 Sep 2011) 24% 29% 31% 25% 76% 71% 69% 75% Percent responses (n = 1011) 100% Strongly Agree & Agree 75% 50% Strongly Disagree & Disagree 25% 0% 18-29 30-36 37-44 Age Group 45+ Growing your repertoire of communication styles Responsive Supportive Style High-energy display and movement Active listener, shows approval Informal, personal, first-name basis Displays feelings in voice, gestures Naturally persuasive, dramatic Fast speaking rate, infrequent pauses Encourages with pauses and eye contact Directive Style Reflective Style No-nonsense attitude Shares distinct opinions, dominant Expressive, uses gestures Limited displays of feelings Unassertive Assertive Emotive Style Passive listener, limits mannerisms Appears deep in thought, limits speaking Orderly and attentive to details Unresponsive (Fetzer, 2009) Maturity Assessment, an opportunity to resurrect? The IACCM Business Risk Management Maturity Model • Last update BRM3, version 14, 30 January 2003 • Now abandoned • Let’s redevelop the Intellectual Property BRM3 specifies risk competencies across 4 levels of maturity • Novice • Competent • Proficient • Expert BRM3 assesses 4 corporate attributes • Culture • Process • Experience • Application References Eunson, Baden. Communication in the Workplace. Milton, QLD: John Wiley & Sons Australia, 2007. Fetzer, Ronald C. “Communication Style: An Important Factor for Successful Communication.” In The 2009 Pfeiffer Annual: Management Development, by Robert C. Preziosi, 65-87. San Francisco, CA: Pfeiffer, October, 2008. Glendon, A. Ian, Sharon G. Clarke, and Eugene F. McKenna. Human Safety and Risk Management. 2nd Edition. Boca Raton, FL: Taylor & Francis, 2006. IACCM. “The IACCM Business Risk Management Maturity Model (BRM3).” IACCM International Association for Contract & Commercial Management. January 2003. www.iaccm.com/research/library/?id=3698 (accessed July 7, 2011). Thank you Questions