By

Resource Pro Editorial Team

Why empathy is becoming a strategic advantage in risk management

Share

In a recent article published by The Insurance Lead, “Risk management needs to show its empathetic side: Ernest LeGrand on building strategic leadership in an AI driven world,” author David Kaplan explores why empathy, long considered a soft skill, may become one of the most important capabilities for risk leaders adapting to rapid technological change.

Risk professionals, from CROs to corporate risk managers and carrier side leaders, are facing an environment defined by heightened volatility, accelerated decision cycles, and the introduction of AI into core workflows. As organizations embed automation into underwriting, claims, compliance, safety, and enterprise risk processes, the immediate impulse is to focus on technical competence. What tools to adopt, what data to use, and how to quantify risk differently.

But the Insurance Lead interview argues that this technical focus is only part of the story. According to Ernest LeGrand, effective risk leadership in an AI driven world depends not just on analytical strength but on the ability to lead with empathy. Leaders must understand people, adapt communication, build trust, and navigate the emotional impact of change. Leaders who cultivate empathy, LeGrand suggests, will guide organizations through AI transformation more successfully than those who rely on expertise alone.

This insight is especially important for risk managers who sit at the intersection of strategy, operations, and human behavior. As LeGrand notes, risk management can no longer be defined as the department that simply says “no.” It must help organizations balance innovation with caution, encourage responsible adoption of new tools, and support teams who may fear job displacement or uncertainty. Leaders who ignore the emotional context of AI adoption risk creating resistance, fragmentation, or disengagement. Each of these introduces additional operational and cultural risk.

The consequences of this shift are profound. In many organizations, risk professionals now influence decisions that extend well beyond traditional hazard, financial, or operational exposures. They are being asked to guide policies on AI governance, employee retraining, ethical use of data, and the cultural implications of automation. These responsibilities require a leadership style that blends strategic clarity with human centered understanding. Leaders who cannot communicate the “why” behind decisions, or who underestimate how people respond to change, may find their strategies faltering.

LeGrand’s perspective also highlights the growing importance of adaptability. AI is not a static innovation. Its capabilities, limitations, and applications evolve continuously. Risk management leaders must be comfortable iterating, learning, and adjusting, while also providing stability for the teams and departments that rely on them. Empathy becomes a bridge between fluid technological realities and the organization’s need for confidence and direction.

For risk managers and senior leaders evaluating what this means in practice, the article clearly signals that upskilling is no longer optional. Communication skills, relationship building, conflict navigation, and emotional intelligence will matter just as much as technical risk expertise. Leaders who strengthen these competencies will be better positioned to influence executive decision making, collaborate across departments, and articulate the value of responsible AI integration.

Practical opportunities emerge from this mindset shift. Leaders can start by examining how their teams experience technology adoption today. Are employees anxious about automation? Do they understand how AI will change their responsibilities? Do risk policies reflect both technical considerations and cultural ones? Agencies, carriers, and corporate risk teams can benefit from structured listening sessions, clearer change management practices, and training programs that reinforce collaboration between people and technology. These efforts build trust. Trust reduces operational drag during periods of transformation.

A brief excerpt from The Insurance Lead captures the essence of LeGrand’s point.

“Empathy gives leaders the ability to navigate uncertainty without losing sight of the people who must live with the decisions they make.”

This quote underscores the balance modern risk leaders must strike. AI provides powerful tools for prediction, analysis, and efficiency, but it cannot replace the human capacity to understand context, build relationships, and support teams through ambiguity. Leaders who embrace both sides, technical modernization and empathetic engagement, will help their organizations move faster, more confidently, and with fewer unintended consequences.

From ReSource Pro’s perspective, LeGrand’s insights align with a broader pattern we see across the industry. Risk and operations teams adopting AI are most successful when human centered leadership drives the transformation. AI can streamline workflows and elevate decision making, but it does not resolve organizational friction, training gaps, or cultural resistance. Those challenges require leaders who can communicate clearly, build alignment, and reinforce the shared purpose behind technological change.

In an era when risk is expanding, from cyber threats to supply chain disruption to compliance uncertainty, the ability to lead with empathy becomes a competitive advantage. Risk professionals who cultivate these skills will not only guide better outcomes but will elevate their role within the organization. As AI continues to reshape insurance and risk management, empathy may be the capability that defines the next generation of leaders.


Source: Risk management needs to show its empathetic side: Ernest LeGrand on building strategic leadership in an AI-driven world
Author: David Kaplan
Publication: The Insurance Lead
Original Publication Date: 2025

  • AI adoption
  • change management
  • human-centered design
  • leadership skills
  • organizational culture

Solutions

  • Business services
  • Process
  • Strategy
  • Technology services

Author

Resource Pro Editorial Team