Reflecting on Human Capital Risk

Check out this interesting press release about risk and Human Resources. To summarize, it argues the kinds of risks managed as a silo by HR need to be better integrated into enterprise-wide risk management. The related survey noted that:

one-third (31 percent) of companies believe they effectively assess human capital risk, and 24 percent believe they do an ineffective job

I appreciate this finding for one simple reason: some people want to de-scope every kind of risk that falls outside of their skill set, in order to focus on the ones they feel comfortable with. Human capital risk is one of those kinds of risk that people like to shy away from, even though human capital may represent the company’s most significant investment. In my experience, artificially limiting the scope of risk most often occurs with practitioners who like to manage IT, project or operational risks. But ignoring other risks just means relying on another part of the business to handle them. That is not enterprise risk management, but just a misrepresented form of silo risk management.

Eric Priezkalns
Eric Priezkalns
Eric is the Editor of Commsrisk. Look here for more about the history of Commsrisk and the role played by Eric.

Eric is also the Chief Executive of the Risk & Assurance Group (RAG), a global association of professionals working in risk management and business assurance for communications providers.

Previously Eric was Director of Risk Management for Qatar Telecom and he has worked with Cable & Wireless, T‑Mobile, Sky, Worldcom and other telcos. He was lead author of Revenue Assurance: Expert Opinions for Communications Providers, published by CRC Press. He is a qualified chartered accountant, with degrees in information systems, and in mathematics and philosophy.