This site uses cookies to provide you with a more responsive and personalised service. By using this site you agree to our use of cookies. Please read our cookie notice for more information on the cookies we use and how to delete or block them.

Bookmark Email Print page

HR organisations need to prioritise people-related risk says Deloitte


DOWNLOAD  

6 August 2012: With low-probability events that have a far-reaching global impact (black swan events) on the increase, people-related risk is shaping up to be one of the key trends in Human Resources (HR) according to professional services firm Deloitte. HR functions now need to adjust their own priorities as people risk rises on the corporate agenda.

In the global report   “Humans Capital trends 2012: Leap ahead”,  Deloitte highlights how  forward-thinking HR functions are partnering with core risk functions such as Risk, Legal and Internal Audit, to identify, prioritise and monitor people-related risks.

Nicky Wakefield, Deloitte Consulting’s National Leader of Human Capital, believes Australian leaders should be better leveraging their HR Partners to help manage their key people related risks more effectively.

“Leading organisations are increasingly engaging their HR leaders to help them manage risks across the entire spectrum of risk-related activities, from strategy and planning to operations and compliance.

“This involves Chief Human Resource Officers (CHROs) joining risk committees and ensuring people related risks are a recurring agenda item at executive and board meetings.

“HR leaders need to include formal risk management and benchmarking into a business’s processes and strategies, in order to provide a broader and more informed view of people-related risks,” said Ms Wakefield.

The report identified nine practical implications that HR functions can now adopt in order to be able to adjust their own priorities.

  1. Take the lead on managing human capital risks. This requires a team within HR to focus on human capital risks throughout the business.
  2. Change how HR works with the business. This helps HR identify people risks before they actually become a problem.
  3. Preparing for broad risk discussions. CHROs should be now preparing themselves to speak with authority on both people risks and HR functional risks.
  4. Collaborating with the Risk Management function. HR functions are engaging proactively with the risk management team so details of HR systems and processes are understood.
  5. Creating a risk mind-set for day-to-day HR activities. Leading organisations are ensuring HR and risk management work together to create a single set of practical and risk intelligent processes.
  6. Making the most of existing data. Using advanced analytics and data to help a company manage risk more effectively.
  7. Understanding the risk impact of HR changes. Organisations are recognising that HR changes can affect the risk profile of an entire organisation.
  8. Recognising the importance of aligned incentive compensation programs. HR leaders now need to understand and articulate the link between incentive compensation and risk.
  9. Helping to transform risk management. To manage risk effectively close alignment is needed between HR and risk management programs.

“In the new world of interconnectedness, this is an opportunity for CHROs, who are under the risk spotlight, to demonstrate their value. It is the HR leaders who embrace the critical role that people play in avoiding and managing risk, who will shine,” added Ms Wakefield.

Pre-register for Digital disruption: Short fuse, big bang?  

Digital disruption: Short fuse, big bang? , the newest paper in Deloitte's Building the Lucky Country series , will consider the magnitude of digital transformation within Australian business and government – the size of the 'bang' – as well as how quickly 18 industry sectors will be affected – the length of the 'fuse'. Pre-register now to receive our digital disruption paper when it is launched in September 2012.

Last Updated: 

Contacts

Name:
Jane Kneebone
Company:
Deloitte Australia
Job Title:
Corporate Affairs & Communications
Phone:
Tel: +61 3 9671 7389, Mobile: +61 416 148 845
Email
jakneebone@deloitte.com.au
Name:
David Brown
Company:
Deloitte Consulting
Job Title:
Human Capital Leader
Phone:
Tel: +61 2 9322 7481
Email
davidbrown@deloitte.com.au

Share

 

 

Follow us



 

Talk to us