Risk training for the board and executives can be a powerful method of re-positioning the role of risk in your business.
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It's also an opportunity to help leaders learn from past successes and failures, test their ability to respond to emerging threats, and embed risk organisation-wide.
So, how do you deliver risk management training for the board and executives that is tailored, engaging, informative and actionable? Pooling insights from our members, who shared their approaches to this challenge at a recent collaboration, here's a 10-point guide.
1. Understand the gaps
Before assuming what boards and executive teams would like from risk training, ask first: what do you need and how can we best support you?
Identifying areas where the board may have weaknesses or insecurities — including in risk management, compliance, regulation or broader governance — allows you to build a training programme around these gaps.
If you train on risk alone, you will inevitably create a silo effect. However, if you consider risk training more holistically and make sure it addresses multiple inter-related areas, it has more impact"
Risk Leadership Network member
Head of risk, FTSE 100 organisation
2. Know your audience
Adult learners are most engaged when they can see how the training connects directly to the importance of their role. With this in mind, positioning training as an "opportunity to be better at your job" can make it feel more relevant to them.
It's also important to acknowledge that senior leaders in the room are experts in their own right, and the goal of training is to help them refine and enhance a specific set of skills.
3. Integrate human insight
Several risk leaders emphasised the importance of moving beyond risk registers, heatmaps and even risk appetite statements. While these tools are certainly important, they can be overly technical or impersonal.
For training to have real impact, it should integrate the human with the technical. The goal is to help board directors and executive teams think about the risks and opportunities in a more pragmatic way. This may involve using real-life examples (e.g., 'what keeps you up at night?') to create a deeper connection."
Risk Leadership Network member
CRO, large retail group in the Middle East
4. Break the ice
Starting risk training sessions with ice breakers can set the tone for more active engagement and learning.
This doesn't have to be anything more than a simple activity. For example, quick fact-check games can help the room to decompress and get comfortable discussing potentially complex and challenging topics.
These activities may highlight how biases can sometimes influence decision making and help participants recognise how easy it is to fall into the trap of relying on recent or limited experience when assessing risks.
5. Share case studies
Incorporating case studies into risk training — not just the good, but the bad and the ugly — is a powerful tool for learning and reflection.
While positive case studies reinforce the value of risk, and demonstrate how companies have used risk management to successfully make informed, strategic decisions, examples of poor risk management can highlight the potential consequences of overlooking or mishandling risk.
Risk Leadership Network member
Head of risk, ASX-listed organisation
6. Factor in key pillars
When it comes to key subject areas, one member shared the following four pillars to consider when designing board and executive team risk training:
7. Test vulnerabilities
Many members describe scenario testing — or 'pre-mortems' — as highly effective in engaging board directors and executive teams during risk training. These activities place leaders at the centre of real-life situations that highlight potential vulnerabilities.
While the exercise requires some pre-work, it encourages participants to think critically about risk, and identify the causes, impacts and controls while stepping through the organisation's risk framework to address the situation.
The key is to develop a worst case scenario based on internal or external risks, such as major operational disruptions or project failures.
Risk Leadership Network member
Head of risk & governance, FTSE-listed organisation
8. Ask the right questions
Another key aspect to cover are the questions the board should be asking of executive teams and risk teams. How do you — as the risk leader — want the board to interrogate and gain a deeper understanding of risk and opportunity?
One member shared the following example questions to consider:
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9. Identify risk champions
When it comes to driving effective risk management, the role of risk champions within the board and executive teams cannot be overstated.
Champions, or advocates, are key to influencing and shaping the organisation's risk culture.
Several members agree having a key advocate within the board, such as the Chair of the Risk Committee for example, can be an invaluable ally.
10. Consider external facilitators carefully
When facilitating risk training with boards and executive teams, internal knowledge is key. Risk leaders understand intimately the organisation's culture, nuances and operational environment better than anyone else.
At the same time, bringing in third parties for training can provide boards and executive teams with objective perspectives that lend weight to the discussion, particularly when it comes to risk maturity.
We engage an external provider for board evaluations and independent assessments to help identify gaps in capability and where training is required."
Risk Leadership Network member
CRO, multinational organisation in Europe
What's next?
Risk training and development — for the board, the business and the risk team itself — is a topic that our members regularly collaborate on.
As well as sharing the training materials they are using, risk leaders have explained how they are optimising board committees and boosting executive engagement with risk.
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