HR Standard Element 3: HR RISK MANAGEMENT

3.1  D E F I N I T I O N

HR Risk Management is a systematic approach of identifying and addressing human factors  (uncertainties and opportunities) that can either have a positive or negative effect on the realisation of the objectives of an organisation.

 3.2  OBJECTIVES

3.2.1  To increase the probability and impact of positive events and decrease the probability and impact of negative events caused by human factors on the achievement of organisational objectives.

3.2.2  To align HR and people management practices within the governance, risk and compliance framework and integrated reporting model of the organisation.

3.2.3  To ensure appropriate risk assessment practices and procedures relating to human factors are embedded within the organisation.

3.2.4  To ensure appropriate risk controls are designed and applied to HR activities and interventions.

3.2.5  To give the means to HR to play its key contributor role in creating and sustaining a risk culture in an organisation.

3.3  IMPLEMENTATION

3.3.1  Position the role of HR in influencing and communicating the organisational risk culture.

3.3.2  Assess potential positive and negative human factor risks to achieving organisational objectives.

3.3.3  Identify and evaluate the potential risk impacts with regard to strategic and operational HR activities.

3.3.4  Decide on appropriate risk appetites for the different components of the HR function.

3.3.5  Design and implement appropriate people-based risk management systems and risk controls.

3.3.6  Ensure all HR risk practices conform to the organisational governance, risk and compliance strategies and policies including integrated reporting.

3.4  NOTES

This standard element should be read and applied by taking cognisance of all the other standard elements, but with a particular focus on strategic HR management, talent management, reward employment relations management, workforce planning, HR service delivery and HR measurement.

HR Competency Model: HR practitioners must be able to play an appropriate role in the following outputs:

  • Governance principles and adherence
  • Legislation knowledge and compliance
  • HR Risk Management
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