Risk Management is an ever increasing concern for the business world. Economic instability is continuing and large organisations continue to find themselves in the public eye for scandals such as tax avoidance and LIBOR fixing.
Despite the awareness that Risk Management is more vital to an organisation than ever before, an eye-opening report by talent measurement company SHL showed that organisations are failing to see the risk in undervaluing their staff. One possibility for this issue, the paper suggests, is a tangible assets-focused organisation rather than a people-focused organisation. The paper asserts that in reality, people are the biggest asset to any business.
The SHL report found that 1 in 8 employees pose a significant risk to a company. Issues include employees failing to comply with policies and procedures and employees leaving the company due to a lack of clear career opportunities. These concerns can, and frequently do, affect the public’s trust in an organisation and the overall smooth running of the company.
Simon Ashby, an associate professor at Plymouth University researching the risk culture within the financial industry, stated that “an organisation’s people are the single biggest cause of risk”. Referencing organisations such as Northern Rock and Bear Stearns he insisted in times of crisis within a company “…you could say that the company is not very good at managing people risk if it allowed something like this to happen.” In order to reduce the risks caused through poor people management Ashby insists that risk management and people risk should be understood from the very top of the organisation.
Having an up-to-date view of employees’ roles and jobs is essential to reducing people risk within any organisation. It is vital to ensure that an individual’s responsibilities is communicated to them in order to ensure all regulatory and role requirements are met throughout the organisation.
Xactium’s Role Manager solution enables organisations to utilise talent and capabilities information to manage all staff roles and responsibilities, help organisations to retain staff, and reduce costs associated with learning and development.
Find out more about the solution that has helped a number of global banks understand the value of their employees.