During a recent Beyond Insurance program, two highly successful producers explained that they used a golf analogy to explain risk management to their prospects . They shared that it is relatable, memorable, and instantly makes complex concepts clear.
Here’s how you can break down the 5-step ERM process using the game of golf – and how to make it stick with your prospects.
Step 1: Identify Risks (The Course Layout)
Start by asking your prospect, “Have you ever played golf without looking at the course map first?” They’ll probably laugh and shake their head. Explain that, just like a golfer who maps out the terrain, hazards, and distances before taking a shot, you will start with identifying risks. You’re helping them see the whole course before they even pick up a club.
Step 2: Assess Risks (Choosing the Right Club)
Next, say something like, “Once you know the layout, you wouldn’t just grab any club, right?” Your prospect will get it – every golfer knows you choose the club based on the shot. In risk management, it’s the same: you assess each risk for its severity and likelihood. Some risks might need a driver, while others just need a putter. It’s all about choosing the right tool for the challenge ahead.
Step 3: Develop Strategies (Planning the Shot)
Tell your prospect, “Even the best golfers don’t just hit the ball without planning their shot. They think about where they want it to land and how to get there.” That’s what you’re doing in this step – helping them map out strategies to minimize risks. Whether it’s adjusting the swing or picking the right angle, it’s about planning ahead to avoid hazards.
Step 4: Implement Controls (The Swing)
Here’s where it gets into implementation. Say, “After planning, it’s time to take the swing. You don’t just keep planning forever – you execute.” In other words, this means putting those risk management strategies into action. Just like a smooth, well-practiced swing, you’re executing the plan to mitigate risk.
Step 5: Monitor and Review (Checking Your Position)
Finally, remind your prospect, “Even after you hit a great shot, I won’t just walk away. Together, we will watch where the ball lands, check your position, and adjust your strategy for the next shot.” Risk management is the same. We will keep monitoring risks and reviewing your strategy to make sure you’re still on course.
Why This Works
The golf analogy works because it takes a complex concept and breaks it down into something your prospects already understand. It turns ERM from a vague process into a clear, relatable story. They’ll see themselves not just trying to manage risks, but strategically navigating their way through challenges – just like playing a round of golf.
Next time you’re pitching your process, ditch the textbook talk. Use the golf analogy to make your point – and watch your prospects’ faces light up with understanding. That’s how you close the gap between confusion and clarity.