Risk Management isn’t something which is usually associated with the HR function but why not?
When we think about it carefully, the biggest risk to all businesses is the things that people do or say, or don’t do from not protecting personal data or passwords to committing fraud, harassing or bullying others or stealing from their employer.
It’s the risk of people doing things they shouldn’t or not doing things they should.
People Risk is often something which is overlooked and fundamentally, breaches are caused by people, whether it be intentional or not. If your Managers and the people in your business are not always conscious of their responsibilities in regard to Data Protection, Cyber security, Health & Safety, AML or HR then it more likely that they will make a costly mistake.
However unintentional, all the above breaches carry some form of financial and reputational penalty, which can be very damaging, whatever the nature of your business.
How people present a Danger
The actions and words of people we work with can have dire implications on the business and how much damage or cost is associated. Here’s some areas which can impact you via your employees:-
- Theft including intellectual property
- Employees using the Company equipment or licences for personal gain
- Breach of health and safety regulations
- Inadequate levels of checking or signing authority
- Data protection breaches
- Inadequate cyber security measures
- Mishandling of disciplinary or grievances
- Reliance on one person for particular skills or knowledge.
- Lack of pre-employment checks
Prevention is better than a breach
Good processes, training and awareness are key to protect yourselves from all areas of people risk. By consciously keeping the risks in mind, we are better prepared to spot issues at an early stage and deal with them.
If you’d like to discuss any further questions you have on people risk, please do get in touch.