Every day there are things that can go wrong in organizations. And sometimes they do, often taking an organization by total surprise. Assessing what threats exist from the HR perspective can give an organization a far greater chance to minimize and even prevent the potential loss. When unforeseen threats transform into a situation, the effect can ripple from those directly involved all the way out to customers or even beyond the organization’s operations altogether and into the realm of reputation.
“People are at the core of each major risk. If not as part of the problem, then as part of the solution.” — DELOITTE, 2012 REPORT
Understanding the threats and managing the associated risks are imperative at every level of an organization – because it’s the people (the human capital) who are supporting the organization at every level. Risks can present in different forms such as: complacency, turnover, occupational fraud, catastrophic workplace events, and negligent hiring and retention. In fact, human capital is one of the most pressing corporate risks, evidenced by its continuous presence on the Government Accountability Office (GAO)’s high risk list. Human capital risk should be on your radar too.