Mitigating risk by using communication as a risk control

Explained by the example of a breach of privacy legislation

In today’s business world trust is a vital resource for companies. To ensure you do not harm the trust stakeholders place in you as a company, many companies have extensive risk control systems in place. Risk controls ensure predictability, business continuity and an adequate response when incidents occur. However, gaining and maintaining trust is not best achieved through a ‘silent’ risk management system. Active communications play an essential role in building trust and are a crucial component of the risk management system. When done properly, it can even be a strategic differentiator. In this article we propose that effective internal and external communication play an essential role in managing risk at each stage of the risk lifecycle and that communications should be an integral part of all your risk controls — especially when it concerns how you handle your stakeholder's data.