Risk Identification and Assessment - HR Issues

The organizational game is changing fast these days. The HR manager today acts as an associate with line management to crack important business issues. We therefore, have the emergence of Business HR function these days.

One of the most common factors in all organizations these days is the change. This change brings with it - risk. It is therefore imperative on the part of human resource managers to be aware of these risks.

Risk managers today are increasingly one in their opinion regarding the intervention of HR in the management of risk. For good reason the HR people are partnering their skills with people in the risk management department.

But how exactly do HR people play a role in risk management? Let’s assume that there is a drop in production steadily that has come to the notice of top management. The HR manager having identified the risk i.e. the drop in productivity goes on to locate the human element of the problem. The risk may be on account of a deviation between what should be done operationally and what is being operationally.

Once the risk has been identified the HR manager approaches the line managers and their staff and questions them to assess and prioritize the risk. Finally the HR manager strategizes to deal with the risk, if need be. One of the possible interventions is offering training to the staff. This is one of the ways in which the Human resource people play a vital role in risk management.

Performance Consulting: The relationship between the HR executive and strategic and operational business managers is talked about in performance consulting. Performance consultants work in close alliance with managers and other people within the organization. Their primary task is to work alongside and gain the trust of managers i.e. promotes trust relationships among managers. These partnerships are formed between various groups in the organization like senior managers, line managers and supervisors, top leadership and subject experts. They also promote partnerships with customers and suppliers.

As we know that risk management consists of risk identification, assessment, analysis and prioritization. The HR executive plays a significant role in risk control as well. Risk avoidance is one of the ways to deal with risk. Since the HR managers intervene only in the human element of the risk. Risk control measures here would include succession planning, executive coaching and development, all this to ensure that an organization is equipped adequately to deal with the risk.

Further, in risk management the HR executive plays a vital role in identifying attributes for important positions or executives within the organization. Training, developing and coaching people within the organization so as to increase their work ownership and increasing their morale for the future positions; employee turnover is also a potential risk from HR standpoint.


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