HR organisations need to prioritise people-related risk says DeloitteDOWNLOAD
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.
“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.
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