What is a common consequence of failing to involve stakeholders in the risk management process?

Involving stakeholders in the risk management process is crucial for ensuring that the organization's objectives and strategies are aligned with its risk appetite and potential challenges. When stakeholders are excluded from the risk management discussions, it often leads to a disconnect between risk management efforts and the actual goals and priorities of the organization. This misalignment can result in strategies that do not adequately address the most significant risks facing the organization, potentially leading to ineffective risk responses or missed opportunities.

Stakeholders bring diverse perspectives and insights that can help identify risks that may not be apparent to those outside their area of expertise, ensuring that the risk management process is comprehensive and reflective of the organization's overall aims. Without their input, the risk management framework may lack relevance and effectiveness in navigating the complexities of the organization's environment. Thus, the absence of stakeholder engagement fundamentally compromises the alignment of risk management initiatives with the organizational vision and objectives.