How to 'tune in' to the opportunities, risks and issues facing your business

Professionals - whether risk,
audit, legal or consulting - have
a tendency not to listen. I don't
think this is because they love the sound
of their own voices (although doubtless many do). I think it stems from a lack of confidence in our own abilities, a need
to prove ourselves.

It is as if professionals feel the need to start every relationship (or even every meeting) by proving their technical competence. We need to earn our place
in a discussion by demonstrating in a short time just how much we know about the subject in hand.

This tendency to talk too much (and consequently not listen enough) is a particular problem for risk professionals. To be relevant to and add value to the business, the risk professional needs to understand the risks to achieving the firm's strategy. So their starting point has to be to really understanding the firm's strategy.

To do this, the risk professional needs to meet with business stakeholders and to take the time to understand the key business objectives and the plans in place to implement them, together with the corresponding risks to achieving them. In short, we need to really get under the skin of the opportunities, risks and issues facing our business in its core markets.

Risk directors and heads of risk need to move away from being expected to read a presentation deck and map out some key risks off the back of it and to instead move towards a strategic relationship at the heart of management. Risk professionals need a seat at the decision-making table and to be engaged in a dialogue about opportunities and risks in the business. Whatever means you use to achieve this dialogue, my advice is to start by talking less.

An open mind

The starting point is to have the confidence to ask an open-ended question and to then zip it and listen to the answer. You might think you know what the strategy is, but you will learn so much more hearing about it first-hand. Use the acronym 'WAIT' (Why Am I Talking?) as a reminder. Challenge yourself to answer this and, if you don't
have a good answer, you know what you need to do!

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FIGURE 1: ACTIVE LISTENING, NOT TALKING

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Traps that people often fall into include:

• trying to answer their own question;

• closing down the answer to their own question by giving options or alternatives;

• filling an awkward silence;

• dominating the conversation (perhaps to avoid being asked difficult questions?);

• losing concentration, becoming distracted or bored; and

• being judgmental (their inner voice is saying 'I've heard all this before... I know what the answer is' before hearing the full story).

The good news is there are lots of steps you can take to improve your listening skills; here are my top ten.

1. Focus on asking genuinely open questions.

2. Ask follow-up questions to probe deeper, but try and 'peel away the onion skin' layer by layer rather than using
   a chainsaw to chop it in half.

3. Take time over the conversation
   - the whole risk management process is founded on identifying the right risks. Slow down and allow effective pauses.

4. Repeat back what you are hearing to check you have understood the opportunity, risk or issue.

5. Test your assumptions; be explicit about them.

6. If you don't understand, ask for clarification. This won't leave the other person thinking you are less than
   an expert.

7. Recognise you have a unique frame
   of reference based on your experience and expertise, which may differ considerably from the person you are talking to.

8. Use language the business will understand and try not to blind them with science or to resort to risk-speak.

9. Listen actively, stay in the moment and concentrate. Hard.

10. Listen with a pen or a pencil and
    take notes.

The art of listening

Whilst risk identification is a key area in which listening is important, the art of listening is of course a core skill to be applied throughout the governance, risk
and control process.

Working in partnership with the business to identify key risks and corresponding controls is more likely to uncover the things that will make or break the firm's strategy than sitting in a meeting room with risk colleagues. It's time for risk professionals to engage with business partners and to start a strategic dialogue. Ask some open questions, sit back and listen.

Louise Fleming has 20 years' experience working with professional and financial services firms in business and risk management (www.aretai.net)