Risk Management in Human Resources

Risk Management in Human Resources

Risk Management is a continuous activity that HR professionals perform since every activity of an organization poses a risk. HR professionals will learn and understand Strategies in Risk Management which includes risk identification, risk analysis, and developing strategies to cope with the risk. Some tools for risk identification and analysis are Strategic and Capability Risk Analysis, Threat Analysis, Program Risk Management, and Cost Risk Analysis. A risk map is used to plot the likelihood of occurrence of a risk and the potential severity of the consequences. Strategies to risk solutions include Avoidance, Acceptance, Modification, Transfer or risk sharing. HR professionals will learn to develop a HR risk management plan comprising mapping potential areas of risks, analysis of risk probability and severity, and risk resolution strategy. The risk management plan requires a legal review, and management buy in since there must be commitment from the managment to comply with the financial and human resources.

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