Difference between revisions of "Human Resources"
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== Definition == | == Definition == | ||
| − | '''Human Resources''', in | + | '''Human Resources''', in [[Risk Management]] context, denotes the set of challenges to the firm's [[Business Plan]] and [[Franchise Value]] due to adverse climate among its employees. |
Certain types of human resource issues are covered separately under the [[Operational Risk]] category of [[Employment Practices]] | Certain types of human resource issues are covered separately under the [[Operational Risk]] category of [[Employment Practices]] | ||
| − | == | + | == Risk Sub-Types == |
| − | + | Examples of human resources [[Risk Type | risk subtypes]] include: | |
| − | Examples of human resources risk subtypes include: | ||
* Failure to execute business strategy (to the extend this depends on internal staff) | * Failure to execute business strategy (to the extend this depends on internal staff) | ||
* Departure of valued staff ([[Key Person Risk]]) with both financial and reputational implications | * Departure of valued staff ([[Key Person Risk]]) with both financial and reputational implications | ||
* Low staff morale, leading to low productivity, limited ability to execute | * Low staff morale, leading to low productivity, limited ability to execute | ||
| + | |||
In general the quality of human resources forms the "human capital" of the firm, which is a significant component of its franchise. Risk factors are linked to potentially more structural deficiencies, including: | In general the quality of human resources forms the "human capital" of the firm, which is a significant component of its franchise. Risk factors are linked to potentially more structural deficiencies, including: | ||
| Line 16: | Line 16: | ||
* Inadequate skills, leading to low productivity, limited ability to execute | * Inadequate skills, leading to low productivity, limited ability to execute | ||
* Inadequate compensation with respect to the market | * Inadequate compensation with respect to the market | ||
| − | * Poor risk culture, leading to financial loss, legal and | + | * Poor risk culture, leading to financial loss, legal and [[Compliance]] fines and reputation loss |
== Issues and Challenges == | == Issues and Challenges == | ||
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== External Links == | == External Links == | ||
| − | |||
* [http://en.wikipedia.org/wiki/Human_resources Wikipedia] | * [http://en.wikipedia.org/wiki/Human_resources Wikipedia] | ||
Latest revision as of 14:15, 4 October 2021
Definition
Human Resources, in Risk Management context, denotes the set of challenges to the firm's Business Plan and Franchise Value due to adverse climate among its employees.
Certain types of human resource issues are covered separately under the Operational Risk category of Employment Practices
Risk Sub-Types
Examples of human resources risk subtypes include:
- Failure to execute business strategy (to the extend this depends on internal staff)
- Departure of valued staff (Key Person Risk) with both financial and reputational implications
- Low staff morale, leading to low productivity, limited ability to execute
In general the quality of human resources forms the "human capital" of the firm, which is a significant component of its franchise. Risk factors are linked to potentially more structural deficiencies, including:
- Inadequate skills, leading to low productivity, limited ability to execute
- Inadequate compensation with respect to the market
- Poor risk culture, leading to financial loss, legal and Compliance fines and reputation loss
Issues and Challenges
- This area is not particularly developed from a risk management perspective
