Risk Management as a Profession
Risk management has evolved from being just a discipline to a full-fledged profession that lots of people are choosing these days. Reason, the discipline has become wider and has assumed manifold dimensions making it a crucial function in organizations these days. No wonder there is an increasing number of universities that offer specialized courses on […]
Strategies for Organization Diversity
Let us go through few strategies for organizational diversity: Treat all individuals equally irrespective of their designation, back ground, community and religion. It hardly matters to the organization whether the individual concerned is a Christian, Muslim, Hindu or a Sikh. What matters is his willingness to learn and passion to perform. Rules and regulations ought […]
Reasons for Failure of Virtual Teams
Last year Bob Stuart was given the ‘Best Team Leader’ award because his team had delivered all the milestones accurately and on-time. Along with the award, he was also a given a greater responsibility of leading a bigger and more diverse team whose members were located in 3 different countries. But this year not only […]
Effect of Endocrine System on Human Behaviour
Nervous system protects our body from various dangers by following a sequence of interpretation and reaction to the stimuli. Endocrine system secretes chemicals called hormones throughout our body which influence our feelings, moods and behaviour. Endocrine system is composed of glands which is a group of cells that secrete hormones. Various glands perform various functions […]
Enterprise Risk Management (ERM) vs Traditional Risk Management
Enterprise risk management (ERM) is a buzzword that has been doing rounds in the risk management field for the past few years. It is often used by managers in a context that implies that it is wider in scope than the traditional risk management function. However, the number of risk management professionals who do not […]
These days, the importance of Human Resource Management can not be neglected especially when companies are operating in such a volatile and unstable environment. The department plays a vital role in risk management.
Needless to say, handling people is one of the most difficult tasks in the world and human resource department of any company has to handle them and other related issues every now and then.
Risk Management is not only about controlling or reducing the negative effects of physical and financial threats to the organization. Rather it also includes handling and controlling the risk arising from shortage of employees, their refusal to work and many other issues.
It’s human capital who can make or break the organization. It can take it to new heights or can weaken it. It is, therefore, very challenging to handle and manage the risk resulting from people of the organization. It is only human resource that helps management in dealing with risk. The situation would be worst if they themselves become a risk factor.
People use their skills and intellect to solve expected or unexpected problems. But what if when they themselves become the greatest source of risk or other problems? This is when HRD plays a key role.
Let’s discuss what Human Resource Department of any organization can go the extra mile to manage risk.
Human Resource Management is not only about making policies for the organization. In today’s unpredictable environment, it is certainly the indispensable part of an organization. The major function of HRD is to get the job done from employees and that too ensuring the interest of both the parties - management and employees.
Managing the labor, handling their issues, proper and regular supply of human capital, motivating employees to perform their task in a better way, avoiding unnecessary conflicts and using people to handle risk are what HRD is supposed to do.
When we talk about HR related risks, the subject includes
All these risks can threaten the smooth working of an organization. HRD and risk management are inter-related as they both deal with expected and unexpected problems arising in any organization.
Risk management plans are specially developed and implemented to manage the risk and reducing its negative effect on the organization.
It may or may not be a part of HRD. If the company is facing financial or physical threats, the risk management may not be a part of human resource department. But if it is related to people, industrial relations, conflict management and stress management, it is definitely a part of HRD. It always deals with crisis of human resources of the company.
Recruiting, training and retaining people are the major issues that need to be addressed timely.
HRD also has to deal with people calamities such as accidental death of an employee, temporary or permanent paralysis, constructional accidents, labor discrimination, etc.
Like other risk management plans, plans and programs developed for handling HR issues are not free from problems. They also have some flaws that need to be addressed by HR managers as and when required.
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