Human Capital Risk Management
A new at-scale holistic approach to talent risk for unlocking organizational break through value.
Human skills, knowledge and ethical conduct comprise the human capital component of operational risk. An organization’s risk level increases when human resources fails to meet these operational goals, or mitigate financial losses during performance of normal operations.
Failing to appropriately integrate human capital risk into an organization’s ERM framework can lead to siloed, uncoordinated human capital risk. Top down management efforts across an organization can increase regulatory scrutiny or penalties, potential financial losses, market and brand erosion, and customer complaints.
Psychological safety at work is one of the most important aspects of a business that risk leaders should be analyzing and working to mitigate. How people feel in their work environments plays out in very subtle ways initially, but all too often spirals into more dire situations, impacting individuals, teams, and organizations.
Connecting risk management to psychological safety analytics is smart and prudent as psychological safety affects the most critical KPIs of an organization. Applied psychological safety is the practice of analyzing human capital data in order to make decisions that improve psychological safety as a way to reduce risk and improve organizational performance.
Forget the studies and ask yourself: Was there ever a time you felt that you couldn’t speak up because you were fearful of consequences? Did you feel you couldn’t contribute and grow?
What do you believe the risks are to an organization that has these same feelings playing out in thousands of their people?
Connecting risk management to psychological safety analytics is smart and prudent as psychological safety affects the most critical KPIs of an organization. Applied psychological safety is the practice of analyzing human capital data in order to make decisions that improve psychological safety as a way to reduce risk and improve organizational performance.
Forget the studies and ask yourself: Was there ever a time you felt that you couldn’t speak up because you were fearful of consequences? Did you feel you couldn’t contribute and grow?
What do you believe the risks are to an organization that has these same feelings playing out in thousands of their people?
Simply put: Blind spots are bad for business. The consequences of not being aware of potential risk can be significant, cost millions of dollars, and negatively impact the long-term health and reputation of an organization.
When it comes to risk, human talent is a central component and, more than anything, psychological safety levels in an organization are a precursor to human talent challenges associated with:
• The ability to protect and support people.
• Talent attraction and retention.
• Diversity, equity, and inclusion.
• Performance.
The significance of avoiding human talent blind spots continues to grow in today’s business climate. Every risk management team requires a 360° view of strategic human capital analytics that provides actionable insights. Our digital workforce dynamics shows you where your blind spots are.
Human capital risk mitigation requires
the same degree of vigor that characterizes
other corporate risk mitigation efforts.
Better outcomes require better leaders. To develop better leaders, some form of follow-up and reinforcement following training is required to ensure new knowledge is being applied and desired performance outcomes are being realized.
The spray and play approach to training is not only costly, it’s risky.
Human capital risk management has never been more important than it is now. Breaking down human capital silos in order to deal with human talent threat multipliers is fundamental to the future success of C-suite leaders and their organizations.
Our platform combines workforce dynamics and performance data in an easy-to-use dashboard for risk teams. We quantify risk and opportunities in financial terms and make it easier to identify and prioritize challenges and opportunities.
Perhaps more importantly for a risk team will be the ease with which they can leverage qualified human capital data to support risk management decisions. Pre-emptive action in this area can have a positive impact on the company’s brand and future success.