TABLE OF CONTENTS 8.1 This chapter discusses how Human Resources professionals can develop a strategy for increasing their contribution to the management of risk within their organisation, which will increase their influence, and contribute significantly towards the performance of the organisation.
8.2 The development of the strategy will be tackled in two parts:
The identification of Human Resources risks, and how to classify/ prioritise them to build an action plan.
The development of a strategy and the use of organisation-wide processes to increase influence.
8.3 In Chapter 2 we outlined some approaches to the identification and assessment of risks. We explained that one method is to place risks into three categories compliance, productivity and growth whilst another method is to view risks based on the level of intervention required remedial, preventive and systemic. We also explained that the assessment of risks should take account of two dimensions the possible impact or consequence of the risk remaining untreated, and the likelihood of the risk occurring. These two dimensions can be used to plot risks on a four-quadrant matrix to assist in the assessment/prioritisation of risks and decisions on risk treatment and control.
8.4 In this chapter we will not specify which method of risk assessment or categorisation is used, but do commend these approaches, as it is important to use a formal process to ensure consistency of approach. The organisation may already use a formal system as part of its organisation-wide risk...
