Introduction
Risk is defined as the probability that the actual outcome will vary from an anticipated outcome or returns. Some or all of the initial investment might be lost due to the risk of losing money. Organizations set up procedures for analyzing the risks related to the nature of their business. Typically, the risk is quantifiable by looking at past actions and consequences. For an organization’s success in its business, risk management is essential, as only after risk analysis the organization is able to devise risk management strategies.
Risk Management and Human Resources
Risk management involves discovering, evaluating, and responding to potential pitfalls before they become major problems to protecting a company’s assets and revenue. Financial uncertainty, legal responsibilities, technological challenges, strategic management mistakes, accidents, and natural catastrophes are only some of the possible causes of these risks. Human resource risk management detects and mitigates any employee-related risks to keep a company safe. Any firm may avoid potential problems by ensuring that its workers are happy at work (Mitrofanova et al., 2017). By including human resources in risk management, the business acknowledges the importance of people in achieving its objectives. Most operational, financial, and human resources influence marketing choices. People may either assist or hinder managers in attaining their goals.
Compensation and benefits are at risk if an employee engages in financial misconduct, such as embezzlement. Identifying who has the ultimate power to sign off on financial transactions is one way to reduce risks. Additional witnesses might be added to sensitive financial agreements by HR by requiring other signatures. The theft of business credit cards, the skimming of cash, or the misuse of computers are all examples of embezzlement. Discrimination in the workplace is well-known, and it is unlawful. Human resources may help prevent legal risks by training all parties engaged in the employment process, including recruiters, hiring managers, and others.
The assets and safety of firms are jeopardized when employees leave. If a standard protocol is not in place, leaving behind corporate gear, laptops, and other essential goods. Incorporating procedures for changing passwords and other personal data once an employee has left the company may help reduce this danger. It is also a fantastic opportunity for the organization to better in the future by doing exit interviews. When an employee leaves a firm, an exit interview allows them to express their concerns about the workplace that management may not have noticed.
RACI Chart
A RACI chart ascertains who will be in charge of a particular task, milestone, or decision in a project’s lifecycle. The age-old question, “Who’s doing what?” may be answered by utilizing a RACI chart to identify the roles and responsibilities of each member of a project team (Suhanda & Pratami, 2021). It simply stands for responsibility, accountability, consultation and information. It assigns responsibility to get the job done to one person and accountability to another. Also, it identifies who is to be consulted and who informs the team on progress. Structure and clarity are provided by the RACI model in articulating the responsibilities of stakeholders in a project.
Risk Register
A risk register is an essential part of risk management and project management. One of the most common uses of risk analysis is identifying possible concerns that might jeopardize a project’s or an organization’s goals. It comprises all the information about each potential risk, the degree of effect risk, where it may occur, and the risk response and prevention measures in place (Hopkinson, 2017). Documentation of reactions to risks is kept in a risk register, which needs regular monitoring.
Conclusion
Unexpected incidents may happen to any company or non-profit organization. A natural catastrophe, theft, or injury of the employees or customers might harm a business. If any of these scenarios occur, the organization might lose money or be forced to cease operations. An organization needs to put structures to deal with these risks. A RACI chart and a risk register can be helpful tools in risk management in any organization. Risk management tools help organizations deal with risks much better. They can help an organization to improve its risk management strategies.
References
Hopkinson, M. (2017). The project risk maturity model: Measuring and improving risk management capability. Routledge.
Mitrofanova, A., Mitrofanova, E. A., Konovalova, V. G., Ashurbekov, R. A., & Trubitsyn, K. V. (2017). Human resource risk management in organization: Methodological aspect. In Proceedings of the international conference on trends of technologies and innovations in economic and social studies (Vol. 2).
Suhanda, R. D. P., & Pratami, D. (2021). RACI matrix design for managing stakeholders in project case study of PT. XYZ. International Journal of Innovation in Enterprise System, 5(02), 122-133