INTRODUCTION

1.1 What is Human Resources risk management and what risks does it encompass? Our description of Human Resources risk management involves the integrated risk management of the following risks:

• Human Resources Human capital or people risks.

• Human Resources operational risks.

• Human Resources professional risks.

• Human Resources personal risks.

1.2 We use the term Human Resources risk management because we believe that the risks to be managed or supported by the Human Resources function are much broader that the organisation s human capital or people risks. Human Resources functions can make an enhanced contribution to the organisation s overall management of risk if it looks both outward and inward from its current position and contribution.

1.3 We will briefly explain each aspect:

Human Resources human capital or people risks this is an approach to Human Resources management that treats the organisation s people as a high-level strategic factor that is a positive and active asset to be developed, not a passive cost.

Human Resources operational risks these are risks created by the operational management of the Human Resources function and its direct support for the organisation.

Human Resources professional risks these are risks created as a result of the perceptions (often historical, and often created in other organisations) formed by managers and employees of the role and contribution that is currently being made, or can be made, by the Human Resources function to the organisation, and to managers and employees on a...