To find common ground with differing risk tolerance, emphasize open communication to understand each party’s priorities and boundaries. Propose phased solutions or pilot projects to test risk incrementally. Highlight shared goals, and focus on mutually beneficial outcomes, balancing innovation with reassurance to build trust and alignment.

Se há negociação, apesar do conflito, chamar as partes envolvidas ao ponto inicial e às razões porque se predispuseram a negociar. Na génese está a solução. O resto do caminho é ruído que deve ser filtrado e tratado por quem medeia o conflito.

Navigating negotiations with conflicting risk tolerance levels requires finding common ground for a positive outcome. Here’s how to align divergent perspectives: * Understand Core Interests 🔍: Uncover each party's underlying concerns and motivations to identify shared goals or areas of alignment. * Explore Creative Solutions 💡: Brainstorm alternatives that address key concerns while respecting each party’s risk comfort zones, fostering flexibility and collaboration. * Use a Mediator ⚖️: When perspectives remain polarized, a neutral third-party can offer an impartial view to facilitate dialogue and find mutually acceptable solutions. ** How have you bridged differing risk tolerances in your negotiations? 🤝

Ideally each party will be advised by their own advisors. Advisors ought to be able to hear the other party’s points carefully. Each party needs to be well prepared to make a short, but complete, presentation on their perception of risks. At the of the day the parties goals should be the same and advisors have the job of helping their clients build a bridge between different risks perceptions and risk management systems. It is a collaborative effort in its essence. In oil gas services this is quite common between services companies and oil companies.

Open communication is the only way to resolve such situations. Start with clearly listing the wants of both parties from the situation, segregating these into must haves and also haves of each party. Once identified, focus on must haves, and see if there are any conflicts. If any conflicts here, one will need to tread very carefully and be ready for extended discussion and possible trade-offs. Some of these may be linked with limited understanding, limited experience and/or lack of trust and must be handled accordingly. Yielding on minor points may often give big mileage on other issues. Be conscious that some also-haves maybe linked with ego, and need special handling. Remember, being courteous and upright helps in most cases.

Here are some areas to explore: 1-Open communication: one-on-one communication and focus groups can be used to understand more about each point of view 2-Data gathering: As a consultant, I can gather data from multiple sources such as market research and Gartner. The ideal data comes from the same or similar industry. 3-Analyse and translate the data to the intended user groups. The key here is to clearly define and map the risk likelihood & impact (to bottom line, market reputation, legal etc.) vs. the intended degree of appetite/tolerance. 4-Land on an agreed framework that clearly defines risk rating and detailed actions for each risk (for example, who needs to be notified / who has the authority to approve exceeding thresholds)

Clarify Priorities: Encourage each party to share their main concerns and risk thresholds. Risk Mitigation: Identify ways to reduce or manage risks that align with both parties’ comfort levels. Mutual Benefits: Highlight shared goals and benefits to foster collaboration. Offer Alternatives: Suggest alternative solutions that balance risk and reward for both sides. Propose Phased Approaches: Break down the agreement into stages or phases to reduce immediate risk. Contingency Plans: Develop backup plans to address potential issues, providing reassurance to all parties. Open Communication: Maintain transparency throughout to build trust and encourage flexibility.

• Understand Motivations: Identify reasons behind the other party’s risk tolerance, like financial concerns or past experiences. • Focus on Shared Goals: Highlight mutual benefits, such as long-term profitability or successful outcomes. • Propose Risk-Sharing: Offer solutions like risk-sharing mechanisms or phased commitments to balance risk. • Provide Compromise Options: Present flexible solutions, such as guarantees or adjusted payment terms. • Leverage Data: Use data or case studies to show how similar risks have been managed. • Build Trust: Be transparent and offer reassurances to address concerns and build trust.

Finding common ground in negotiations with differing risk tolerance levels requires careful balancing and understanding. Here are six key approaches: Active Listening- Understand each party's concerns and risk appetite by carefully listening to their viewpoints, which helps identify mutual interests. Clarifying Priorities Focus on Mutual Benefits Flexible Strategies Transparency- Share data and reasoning behind risk assessments openly, building trust and making it easier to bridge gaps. Compromise with Contingencies-Incorporate safeguards or exit clauses to mitigate concerns, accommodating different risk tolerances while still progressing toward a deal.