Risk Management Resources

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Mitigating risks to the corporate enterprise is usually under the direction of specialized risk managers or senior operational managers. Additionally, Human Resources professionals are tasked with risk management in regards to personnel management and employment law matters.

Efficient risk management systems and practices minimize the possibilities of loss in business during a crisis or legal problem. Formal risk mitigation practices usually follow a three step process of Detection > Evaluation > Control. These measures help to identify problematic situations and put policies and procedures in place to counter them. Risk management offers to identify the risk areas of a company before a crisis actually arises. It gives the administration an opportunity to take precaution against such situations. A formalized risk assessment program often quantifies risk in terms of dollars and develops scenarios for various legal and structural problems.

Most HR and employment specific risk management programs involve the company code of conduct and company procedures of work and standards. These policies are put in place to protect the employer in case of a lawsuit and often indemnify the corporation from the action of specific managers or individual actions.

Another new tool to deal with business risks is business continuity planning (BCP). BCP is used as a framework and workflow to address various scenarios. BCP can involve simple issues such as staff turnover, to catastrophic issues such as a class action lawsuit, the loss of key executives, physical destruction of property, or disruption of key partners or the supply chain.
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