Here’s the thing about explaining risk management: If you’re a risk advisor, you already know it’s essential – but your prospects might not see it that way. The secret? Make it relatable. Whether it’s golf, visiting the doctor, or planning a road trip, find a metaphor that clicks. When you explain risk management in terms they already understand, you’re not just educating them – you’re building trust.
So, let’s break it down with one of the simplest and most relatable analogies out there: planning a road trip.
Step 1: Identify Risks (Planning the Route)
Start by asking your prospect, “Would you ever just jump in the car for a cross-country road trip without checking the route first?” They’ll probably laugh and shake their head. Explain that just like a road trip, risk management starts with identifying risks. You’re helping them figure out the best way to get from point A to point B while mapping out potential obstacles – road closures, traffic, weather conditions. You don’t just wing it. You plan.
Step 2: Assess Risks (Checking the Conditions)
Next, say something like, “Even after you know the route, you wouldn’t leave without checking the weather, right?” Your prospect will get it – every traveler knows that conditions can change the plan. In risk management, it’s the same: you assess each risk to determine its severity and likelihood. Some risks are like a light drizzle, while others are a major storm. It’s about knowing what you might encounter before hitting the road.
Step 3: Develop Strategies (Packing the Essentials)
Tell your prospect, “You wouldn’t go on a long trip without packing smart, would you?” You need essentials: snacks, a hotel reservation, a first-aid kit, a spare tire. That’s what developing strategies is all about – preparing for the unexpected. Whether it’s having an emergency kit or mapping alternate routes, you’re making sure you’re prepared for whatever comes up.
Step 4: Implement Controls (Staying on Track)
Here’s where it gets practical. Say, “Once you’re on the road, you don’t just set the GPS and forget it. You follow the route, keep an eye on the road signs, and make adjustments as needed.” In risk management, this is the part where you put your plans into action. You’re actively managing the journey, not just hoping it goes smoothly.
Step 5: Monitor and Review (Checking Your Progress)
Finally, remind your prospect, “Even if everything’s going great, you still check your GPS periodically to make sure you’re on track.” Risk management is the same. You monitor risks continuously, reviewing your strategy to make sure you’re still heading in the right direction. If there’s a detour or a traffic jam, you adjust.
Why This Works
The road trip analogy works because it takes a complex concept and breaks it down into something your prospects already understand. It turns risk management from a vague process into a clear, relatable story. They’ll see themselves not just trying to manage risks, but planning, preparing, and navigating their way through challenges – just like planning a successful road trip.
Next time you’re pitching risk management, ditch the jargon. Use an analogy that fits your prospect’s world – golf, doctors, or road trips – and watch them light up with understanding. That’s how you make risk management feel practical and achievable.