Not True for Effective Risk Communication

B.

For effective communication, information communicated should not inundate the recipients.

All ground rules of good communication apply to communication on risk.

This includes the avoidance of jargon and technical terms regarding risk because the intended audiences are generally not deeply technologically skilled.

Hence use of technical terms is avoided for effective communication Incorrect Answers: A, C, D: These all are true for effective risk communication.

For effective risk communication the risk information should be clear, concise, useful and timely.

Risk information must be known and understood by all the stakeholders.

Information or communication should not overwhelm the recipients.

This includes the avoidance of technical terms regarding risk because the intended audiences are generally not much technologically skilled.

Any communication on risk must be relevant.

Technical information that is too detailed or is sent to inappropriate parties will hinder, rather than enable, a clear view of risk.

For each risk, critical moments exist between its origination and its potential business consequence.

Information should also be aimed at the correct target audience and available on need-to-know basis.

Hence for effective risk communication risk information should be: -> Clear -> Concise -> Useful -> Timely given -> Aimed at the correct audience -> Available on need-to-know basis.

Effective risk communication is a critical aspect of risk management, and it involves conveying information about potential risks to stakeholders in a clear, concise, and meaningful way. The goal is to ensure that everyone understands the nature of the risk, the potential impact it may have on the organization, and the steps that can be taken to mitigate it.

Let's take a look at each answer choice and determine which one is NOT true for effective risk communication:

A. Risk information must be known and understood by all stakeholders.

This statement is true. Effective risk communication requires that all stakeholders have a clear understanding of the risks and the potential impact they may have on the organization. This includes senior management, employees, customers, suppliers, regulators, and other relevant parties.

B. Use of technical terms of risk

This statement is NOT true. Effective risk communication requires that technical terms and jargon are avoided as much as possible. Technical terms may be confusing and difficult to understand for non-technical stakeholders, which may lead to misinterpretation of the risks involved. Therefore, it is important to use plain language and avoid technical terms as much as possible.

C. Any communication on risk must be relevant

This statement is true. Effective risk communication requires that the information provided is relevant and meaningful to the stakeholders. This means that the information must be tailored to the specific needs and interests of the stakeholders, and it must be presented in a way that is easy to understand.

D. For each risk, critical moments exist between its origination and its potential business consequence.

This statement is true. Effective risk management involves identifying the critical moments when a risk may have the most significant impact on the organization. This includes identifying the point of origination of the risk, the potential consequences of the risk, and the steps that can be taken to mitigate the risk before it becomes a significant problem. Therefore, it is important to understand the critical moments associated with each risk and communicate them effectively to the stakeholders.

In conclusion, the answer choice that is NOT true for effective risk communication is B, which states that the use of technical terms of risk is effective. In reality, the use of technical terms may confuse non-technical stakeholders and hinder effective communication.