Module 6: Risk Management

© SHRM 6-1
 Categories of Operational Risk

• Personnel risk (fraud and error)

• Physical assets (business environments)
• Technology (viruses)
• Relationships (lawsuits)
• External/regulatory (external fraud)

HR role: Examine HR policies to prevent or

mitigate loss and ensure business continuity.
© SHRM 6-2
 Risk Management Techniques

Implement
Assess risk Develop systems
programs

Evaluate/modify
Monitor efforts
systems

Tools: Enterprise risk management (ERM) software

systems and risk management scorecard
© SHRM 6-3
 Continuity and Recovery

Business continuity planning

• Identifies potential threats and impacts.
• Plans for disruption, interruption, or loss
of business functions.

Disaster recovery planning

• A set of guidelines to be used for recovery
of data.

© SHRM 6-4
 Emergency Response
Plan Guidelines

• Involve senior management.

• Create a team.
• Set priorities.
• Identify resources.
• Communicate the plan.
• Keep the plan up-to-date.
• Test the plan.

© SHRM 6-5
 Risk Management Legislation: OSHA

Employee rights
Employees must comply with OSHA standards and have
a right to:
• Demand safety and health on the job.
• Request inspections.
• Have an authorized representative accompany an
inspection.
• File a complaint.
• Be informed of workplace hazards.
• Receive training.
© SHRM 6-6
 Risk Management Legislation: OSHA
Employer responsibilities
Keep employees informed.
• Display OSHA posters.
• Provide copies of rules and
regulations.
• Post OSHA citations.
• Maintain accurate records.
• Permit authorized
employee representation
during an OSHA
inspection.
© SHRM
Keep employees safe.
• Correct violations.
• Allow employees to refuse
abnormally dangerous work.
• Provide personal protective
equipment.
• Provide medical surveillance.
• Provide training.
• Enforce rules and
regulations.
6-7
 Safety Hierarchy

Priority 1 • Eliminate hazard.

Priority 2 • Use safeguards.

Priority 3 • Use warning signs.

Priority 4 • Train and instruct.

Priority 5 • Provide personal protection.

© SHRM 6-13
 Safety Responsibilities

HR Line Management
 Gain management  Show support of safety.
support.  Monitor employees.
 Assist in coordinating  Recognize hazards.
safety programs.
 Report accidents and
 Develop reporting conduct follow-up actions.
system.
 Follow up with employees.
 Provide expertise on
 ACCEPT ULTIMATE
accident research and
RESPONSIBILITY FOR
prevention.
SAFETY.
 Train line managers.

© SHRM 6-14
 Accident Prevention

• Design work sites and flow to manage risk.

• Assign safety specialists and line managers
to committees.
• Analyze why accidents happen and have
outside experts inspect working conditions.
• Provide updated job and safety training;
test and document results.
• Provide safety rewards and recognition.

© SHRM 6-17
 Ergonomics Programs

• Ergonomics team
• Work-site analysis
• Job redesign
Include: • Surveys/monitoring/feedback
• Training
• On-site exercise programs
• Budget

• Musculoskeletal disorders
• Computer vision syndrome
Reduce: • Lower back strains
• Sick building syndrome
© SHRM 6-18
 Employee Assistance Programs

Services provided: EAP options:

• Financial • In-house
• Workplace violence • Outside contractors
• Career • Consortium
• Legal • Affiliate
• Family and marital
• Alcohol and drug abuse
• Emotional

© SHRM 6-21
 Drug Intervention Strategies

Constructive • Focuses on job

confrontation performance

• Focuses on the
Counseling cause of the
problem

© SHRM 6-24
 Risk Analysis

Vulnerability = Degree of probability that loss will

occur + Severity of impact

Probability Severity
• Virtually certain • Fatal
• Highly probable • Very serious
• Moderately • Moderately serious
probable • Negligible
• Improbable

© SHRM 6-27
 THANK YOU

© SHRM