How do you ensure that you have an accurate assessment and understanding of your stakeholders’ risk appetites?
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Chief Technology Officer in Software3 months ago
Understanding stakeholders' risk appetites is crucial yet challenging, as there isn't a straightforward framework to measure it directly. However, alternative methods and inferences can be utilized. For instance, when dealing with data sharing agreements with both internal and external stakeholders, creating a detailed contract can be instrumental. This contract should clearly outline the types of data used, data retention policies, and ETL (Extract, Transform, Load) policies. It should also specify governance measures to ensure stakeholders feel comfortable sharing their data. These contracts and discussions can provide insights into the stakeholders' risk appetites, especially in organizations just beginning their enterprise data journey.Head of Global Data & AI Center of Excellence in Consumer Goods3 months ago
The assessment of risk appetite can vary significantly depending on the use case. For example, when cost implications are a primary concern in developing use cases, stakeholders might show a higher tolerance for risk. Conversely, if a use case could potentially expose sensitive data or impact the company's reputation, stakeholders tend to be more risk-averse. Therefore, understanding the specific challenges and implications of each use case helps in accurately gauging how risk-averse or risk-tolerant stakeholders are.