age 1 of 2

nUMAN kLSCUkCLS kISk ASSLSSMLN1

IN1kCDUC1ICN
8uslnesses worldwlde operaLe ln an era of unprecedenLed and unrelenLlng change and facLors
such as globallsaLlon lnLerdependence Lechnologlcal and markeLplace change and pollLlcal
and socloeconomlc uncerLalnLy have creaLed new areas of rlsk 8uslnesses LhaL cannoL manage
Lhelr key rlsks effecLlvely wlll noL survlve over Lhe long Lerm
As organlsaLlons sLrlve Lo become globally compeLlLlve and dellver on shareholder and
sLakeholder expecLaLlons lmplemenLaLlon of Puman 8esource (P8) rlsk managemenL besL
pracLlce has become essenLlal A key parL of any rlsk managemenL programme ls galnlng an
undersLandlng of Lhe rlsks lnvolved ln Lhe managemenL of an organlsaLlon's mosL valued asseLs
Lhe people who make all Lhe buslness processes and Lechnology funcLlon ln order Lo achleve
buslness LargeLs A recenL lnLernaLlonal survey conducLed amongsL lorLune 1000 companles
has hlghllghLed Lhe followlng Lop flve P8 rlsk areas as percelved by Senlor LxecuLlves
O @alenL managemenL and successlon plannlng
O LLhlcs/Lone aL Lhe Lop
O 8egulaLory compllance
O ay and performance allgnmenL
O Lmployee Lralnlng and developmenL
Puman 8esource (P8) lssues ranked amongsL Lhe Lop flve buslness lssues lmpacLlng on an
organlsaLlons' flnanclal resulLs yeL almosL half of Lhe execuLlves surveyed admlLLed Lo
revlewlng Lhese rlsks on an ad hoc basls or noL aL all
kISk ASSLSSMLN1 kCCLSS
@he purpose of human resource managemenL ls Lo allgn Lhe supply of skllled compeLenL
lndlvlduals wlLh Lhe organlsaLlons currenL and fuLure buslness plans and requlremenLs ln order
Lo secure fuLure survlval and success Any assessmenL of human resource rlsks requlres
conslderaLlon of all Lhe lnLernal and exLernal rlsk facLors LhaL can lmpacL on Lhe resourclng
developmenL moLlvaLlon and reLenLlon of employees lnLernal rlsk facLors would lnclude lssues
such as organlsaLlonal culLure managemenL sLyle envlronmenLal cllmaLe eLc LxLernal rlsk
facLors would lnclude lssues such as economlc cllmaLe currenL and fuLure labour Lrends
changlng regulaLlons eLc
@he full rlsk managemenL cycle beglns wlLh ldenLlfylng all lnLernal and exLernal rlsk lssues
llnklng Lhese Lo speclflc sLraLeglc ob[ecLlves as well as ldenLlfylng lnLernal conLrol weaknesses
and developlng acLlon plans Lo remedlaLe Lhese
age 2 of 2

Samp|e nk k|sk keg|ster
k|sk Issue

Impact on 8us|ness Current Contro|s kemed|a| Act|ons

Industr|a|
Act|on




O roducLlon and flnanclal
loss
O amage Lo properLy
O lLlgaLlon
O 8epuLaLlon lmpalrmenL
O lracLured labour and sLaff
relaLlonshlps

O SLrlke conLlngency plan
O egal compllance monlLorlng
O SLrlke acLlon plan
O ,onLhly communlcaLlon wlLh
sLaff represenLaLlves


O ,onlLor and malnLaln
good relaLlonshlps wlLh
employees
O onducL cllmaLe survey
wlLhln 6 monLhs for
revlew




Loss of sk|||s




O osLs of Lralnlng and
developmenL
O 8ecrulLmenL cosLs
O oss of knowledge
O lmlnlshed producLlvlLy
O ack of conLlnulLy
O ngolng recrulLmenL
O Successlon plannlng
O LxlL lnLervlews for daLa
gaLherlng
O areer plannlng
O ay lndusLry relaLed wages
benchmark
O rovlde nonflnanclal beneflLs
egs canLeen cllnlc on slLe
employee surveys
O SofL skllls and managerlal
Lralnlng
O onfllcL managemenL
and sLress managemenL
Lralnlng
O reaLe Lransparency
around promoLlons
O reaLe channels for Lwo
way communlcaLlon


GCCD kISk MANAGLMLN1
P8 rlsks have been raLed by LxecuLlves of Lop orporaLlons as belng amongsL Lhe mosL llkely
rlsk lssues Lo lmpacL on flnanclal performance @hey have also been raLed amongsL Lhe Lop rlsk
lssues mosL llkely Lo maLerlallse ln any glven year P8 rlsks are ofLen dlfflculL Lo deflne conLrol
and manage due Lo Lhelr llnks wlLh human behavlour culLure values and demographlcs whlch
are speclflc Lo each organlsaLlon
Clobally companles are Lrylng Lo manage P8 rlsks ln economlcally LurbulenL Llmes compeLlng
for sLaff ln a global workplace managlng an agelng workforce recrulLlng from a pool of scarce
skllled labour and managlng compllance ln an lncreaslng complex regulaLory envlronmenL A
rlsk assessmenL ls a vlLal Lool whlch ensures LhaL rlsk lssues are belng ldenLlfled Llmeously LhaL
approprlaLe conLrol mechanlsms are ln place and Lhese can Lhen be reporLed on Lo LxecuLlve
,anagemenL