against the company. Related issues might
encompass the following:
E Compliance with wage and hour laws,
or hiring practices, such as background
E Training and education, as well as policies and procedures, to prevent sexual
harassment, workplace violence, and discrimination of any kind.
E Ensuring employees follow regulatory
compliance and safety prevention policies and procedures.
E Implementing practices and controls to
prevent theft, fraud, embezzlement, bribery, or other criminal acts.
To this end, companies should take full
advantage of the range of risk assessment
tools available, including creating questionnaires and surveys; reviewing personnel
loss histories and workers’ compensation
claims records; interviewing managers and
staff, reviewing flowcharts and organiza-
tional matrices; and conducting
on-site inspections. In addition, HR professionals should
have a clearly defined role
in the ERM process, to assist the company in having
a full and properly aggregated view of risks, root
causes, interactions, and
impacts of business strategy
as it affects, and is affected by,
Human capital risk comprises a significant part of the risk
profile of any major organization.
The identification and management of
human capital risks in relation to business strategy should not only be a core
skill of every HR executive, but also such
skills and experience should be shared–
and maximized–through HR participation in the organization’s ERM program.
Don’t let unidentified and unmanaged
human capital risk sink your ship.
Denise tessier is senior regulatory consultant for insurance compliance solutions,
enterprise Risk management and the
consulting Practice at Wolters kluwer
Financial services. she may be reached at