What are the best strategies for managing human resource risks?

2 Conduct regular risk assessments

A risk assessment is a process of identifying and evaluating the potential human resource risks that may affect the organization. It involves gathering and analyzing data, information, and evidence from various sources, such as employee records, surveys, interviews, performance reviews, audits, and incidents. A risk assessment helps to determine the likelihood and impact of human resource risks, as well as the existing controls and gaps. It also helps to rank the risks according to their severity and urgency, and to recommend appropriate actions to reduce or eliminate them.

3 Implement risk control measures

Risk control measures are the actions or strategies that are taken to prevent, reduce, or transfer human resource risks. They can be classified into four types: avoidance, reduction, sharing, and retention. Avoidance means eliminating or avoiding the risk source or activity altogether. Reduction means minimizing or mitigating the risk exposure or impact. Sharing means transferring or sharing the risk responsibility or cost with another party, such as an insurer or a contractor. Retention means accepting or absorbing the risk consequences or losses. Risk control measures should be aligned with the risk management plan and the organizational goals and values.

4 Monitor and review risk performance

Monitoring and reviewing risk performance is the process of measuring and evaluating the effectiveness and efficiency of the risk management plan and the risk control measures. It involves collecting and analyzing data, information, and feedback from various sources, such as risk indicators, reports, audits, and incidents. Monitoring and reviewing risk performance helps to track the progress and outcomes of the risk management activities, as well as to identify any changes, issues, or opportunities for improvement. It also helps to update and revise the risk management plan and the risk control measures as needed.

5 Foster a risk-aware culture

A risk-aware culture is a set of values, beliefs, and behaviors that support and encourage the identification, reporting, and management of human resource risks. It involves creating a positive and supportive environment where employees feel comfortable and confident to raise and discuss human resource issues, concerns, and suggestions. It also involves providing adequate training, education, and communication on human resource policies, procedures, and practices. A risk-aware culture helps to enhance the awareness and understanding of human resource risks among all stakeholders, as well as to promote the ownership and accountability of human resource management.