Risk visualisations are an essential tool for transforming complex data into something decision-makers can really use. But there are ways to elevate your graph game, and ways you can really devalue those visuals. We dug into the research on maximising your visualisation strategies.
In an era of data-driven decision-making, risk professionals are faced with the challenge of translating complex information into visuals that resonate with stakeholders.
Effective risk visualisation takes us from granular risk analysis to strategic decision-making. But what are the best approaches to achieving this?
Whether with dashboards or dynamic charts, visualisations must strike a balance between clarity and depth. C-suite executives especially need visuals that cut through noise while presenting enough context to make confident decisions.
Research underscores the need to cater to your audience. Stakeholders have varying levels of data literacy, and visualisations must adapt to their expertise.
Data platform company Qlik conducted a study on over 7,000 business decision-makers across the US, Europe and Asia, and found that only 24% of them were confident in their ability to read, analyse and work with data.
Overloading decision-makers with too much complexity can obscure critical insights, while oversimplification risks missing nuances.
THE DESIGN PRINCIPLES TO FOLLOW
Keep it simple
Research consistently advocates for simplicity in design.
Statistician and academic Edward Tufte advocated for minimalism in data visualisation, emphasising the importance of clarity and precision. He suggested minimising the use of non-essential elements, or “chart junk”, that do not contribute to the data’s interpretation.
However, simplicity does not mean sacrificing detail — it means focusing on the most critical data points and eliminating unnecessary distractions.
For example, visual cues like colour gradients can instantly convey priority areas, allowing decision-makers to focus their attention.
Let them play
Modern visualisation tools offer interactive elements, enabling users to drill down into specific risks or explore scenarios in real time.
Interactive visuals, such as those powered by Tableau or Power BI, allow executives to explore data intuitively. For example, clicking on a high-risk area in a supply chain map might reveal detailed subcategories, helping leaders understand the root causes.
Tell a story
Data visualisation is most impactful when paired with storytelling. A study with 103 participants found that data storytelling, which combines data, visuals and narratives, improved efficiency in comprehension tasks and effectiveness for understanding single insights compared to conventional visualisations.
Instead of presenting plain data, risk managers should interpret and provide real-world context. For example, you might say: “A 30% increase in cyber attacks over the last quarter reflects a broader industry shift, similar to the surge experienced by Company X, which suffered a data breach affer ignoring early warning signs. This trend calls for an urgent review of IT security protocols.”
Cater to the decisions at hand
Research emphasises that effective visual design should be tailored to the specific decisions users need to make.
Stephen Few’s book Information Dashboard Design: The Effective Visual Communication of Data argues for a minimalist approach in dashboard design and advocates for a focus on actionable insights.
In Andy Kirk’s book, Data Visualisation: A Handbook for Data Driven Design, he highlights the importance of aligning the design with the user’s goals, ensuring that visual elements like colours, shapes or data hierarchies naturally guide attention to decision-making.
In risk management, aligning visualisations with decision-making needs involves presenting data clearly and contextually to emphasise critical metrics, prioritise responses, and facilitate prompt, well-informed actions.
Tailor to the audience
Research emphasises the importance of understanding your specific audience’s needs.
For analysts, detailed dashboards and tools like scatter plots or detailed trend lines work well, offering granularity or in-depth analysis.
For the c-suite, infographics, bar charts or summary dashboards are more effective, focusing on high-level insights with actionable recommendations.
Customisation is invaluable here. Many organisations are adopting tiered dashboards, where users can toggle between high-level summaries and detailed data.
COMMON PITFALLS AND HOW TO AVOID THEM
Overloading
One of the most frequent errors is including too much in a single visual. Even in a small dataset, clutter can make it hard for the viewer to find patterns, relationships and structure.
Visuals should prioritise one key message per chart or graph.
Ignoring accessibility
Accessibility considerations, like colourblind-friendly palettes or readable fonts, are often overlooked.
Colour blindness affects around one in 12 men and one in 200 women – that’s three million colourblind people in the UK alone.
Failing to update
Static visuals can quickly become outdated, especially in dynamic risk environments. Automated tools that update in real-time ensure decision-makers always have the latest insights.
VISUALISING THE FUTURE
Technological advancements have revolutionised risk visualisation.
AI and machine learning enable predictive modelling, while cloud-based platforms facilitate real-time updates. Tools like Microsoft’s Power Bi, Tableau and QlikSense are increasingly popular for their ability to create tailored, interactive dashboards.
Emerging technologies like augmented reality (AR) are also gaining traction. AR overlays can help visualise risks in physical spaces, such as a factory floor or supply chain route, offering a tangible sense of vulnerabilities.
The future of risk visualisation lies in integration. Combining quantitative data with qualitative insights, leveraging AI for predictive analytics, and embracing user-centric design principles will be essential. By ensuring visuals are not only informative but also engaging, risk professionals can drive better outcomes.
Risk visualisation is a strategic tool that influences decision-making at the highest levels. And simplicity, interactivity and audience-tailored design are the cornerstones of making it effective.
By embracing these principles and leveraging cutting-edge technologies, organisations can turn data into actionable insights that empower the c-suite as they navigate uncertainties.
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