{"id":842,"date":"2019-08-13T22:59:34","date_gmt":"2019-08-13T22:59:34","guid":{"rendered":"https:\/\/courses.lumenlearning.com\/wm-humanresourcesmgmt\/?post_type=chapter&#038;p=842"},"modified":"2024-04-25T01:46:14","modified_gmt":"2024-04-25T01:46:14","slug":"managing-risk-in-human-resources","status":"publish","type":"chapter","link":"https:\/\/courses.lumenlearning.com\/wm-humanresourcesmgmt\/chapter\/managing-risk-in-human-resources\/","title":{"raw":"Managing Risk in Human Resources","rendered":"Managing Risk in Human Resources"},"content":{"raw":"<div class=\"textbox learning-objectives\">\r\n<h3>Learning Outcomes<\/h3>\r\n<ul>\r\n \t<li>Describe the process of managing Human Resources\u2013related risks<\/li>\r\n<\/ul>\r\n<\/div>\r\n<img class=\"alignright wp-image-2371\" src=\"https:\/\/s3-us-west-2.amazonaws.com\/courses-images\/wp-content\/uploads\/sites\/4056\/2019\/08\/11215654\/Screen-Shot-2019-11-11-at-1.56.27-PM.png\" alt=\"Decorative image.\" width=\"400\" height=\"267\" \/>Managing HR-related risks involves addressing the five critical areas mentioned above, including workplace violence and risk of international travel. The points that Lowers &amp; Associates recommends for addressing turnover are applicable to all five risk areas and represent basic block-and-tackle elements of HR management, including:\r\n<ul>\r\n \t<li style=\"font-weight: 400;\">Use pre-employment screening<\/li>\r\n \t<li style=\"font-weight: 400;\">Establish fair benefits and compensation and review relative to market annually<\/li>\r\n \t<li style=\"font-weight: 400;\">Pay attention to employees\u2019 needs<\/li>\r\n \t<li style=\"font-weight: 400;\">Increase employee engagement<\/li>\r\n \t<li style=\"font-weight: 400;\">Create a positive work environment<\/li>\r\n \t<li style=\"font-weight: 400;\">Create clear, challenging career paths<\/li>\r\n<\/ul>\r\nSpecific recommendations to address:\r\n<ul>\r\n \t<li style=\"font-weight: 400;\">Occupational fraud\r\n<ul>\r\n \t<li style=\"font-weight: 400;\">Establish and enforce a code of conduct<\/li>\r\n \t<li style=\"font-weight: 400;\">Develop a fraud prevention strategy<\/li>\r\n \t<li style=\"font-weight: 400;\">Implement prevention and detection processes, including risk assessment and internal audits; evaluate fraud controls on a regular basis<\/li>\r\n \t<li style=\"font-weight: 400;\">Conduct fraud awareness training and provide a means of reporting fraud online<\/li>\r\n \t<li style=\"font-weight: 400;\">Screen suppliers and third party providers<\/li>\r\n<\/ul>\r\n<\/li>\r\n \t<li style=\"font-weight: 400;\">Workplace violence\r\n<ul>\r\n \t<li style=\"font-weight: 400;\">Understand risk factors and develop and implement training and prevention programs. OSHA states that \u201cin most workplaces where risk factors can be identified, the risk of assault can be prevented or minimized if employers take appropriate precautions.\u201d[footnote]\"<a href=\"https:\/\/www.osha.gov\/SLTC\/workplaceviolence\/\" target=\"_blank\" rel=\"noopener\">Workplace Violence<\/a>.\" Occupational Safety and Health Administration, United States Department of Labor. Accessed August 20, 2019.[\/footnote]<\/li>\r\n \t<li style=\"font-weight: 400;\">OSHA also emphasizes that establishing a zero-tolerance policy toward workplace violence\u2014applicable to all who come in contact with employees or alternative workers\u2014is one of the best protections.<\/li>\r\n \t<li style=\"font-weight: 400;\">For related resources, including risk assessment, training and prevention, refer to <a href=\"https:\/\/www.osha.gov\/SLTC\/workplaceviolence\/\" target=\"_blank\" rel=\"noopener\">OSHA's\u00a0Workplace Violence page<\/a>.<\/li>\r\n<\/ul>\r\n<\/li>\r\n<\/ul>\r\n<div class=\"textbox exercises\">\r\n<h3>Perspective Point<\/h3>\r\nLowers &amp; Associates notes that although the probability of catastrophic workplace events is low, the potential damage to people, brands and profits justifies risk mitigation.\r\n\r\n<\/div>\r\n<div class=\"textbox tryit\">\r\n<h3>Practice Question<\/h3>\r\nhttps:\/\/assess.lumenlearning.com\/practice\/4c5e90b5-6f5b-4810-84ea-3d4f7517cb8f\r\n\r\n<\/div>\r\n\r\n[caption id=\"attachment_2373\" align=\"alignright\" width=\"200\"]<img class=\"wp-image-2373\" src=\"https:\/\/s3-us-west-2.amazonaws.com\/courses-images\/wp-content\/uploads\/sites\/4056\/2019\/08\/11215833\/Meng_Wanzhou_at_Russia_Calling_Investment_Forum.jpg\" alt=\"Meng Wanzhou\" width=\"200\" height=\"268\" \/> Meng Wanzhou at Russia Calling! Investment Forum.[\/caption]\r\n\r\nAlthough geo-political risks have always been a part of conducting business internationally, trade tensions have recently escalated into economic warfare, increasing the stakes in both financial and human terms. The attempt in 2019 to extradite and prosecute Chinese technology firm Huawei\u2019s CFO Meng Wanzhou has resulted in retaliatory arrests and harassment of American business executives and Canadians in China.\r\n\r\nIn an article for Risk Management magazine associate editor Adam Jacobson notes that \u201ccompanies have a legal obligation, known as a \u2018duty of care,\u2019 to prepare employees and address potential risks they may face while traveling.\u201d[footnote]Jacobson, Adam. \"<a href=\"http:\/\/www.rmmagazine.com\/2019\/06\/01\/preparing-employees-for-travel-risks\/\" target=\"_blank\" rel=\"noopener\">Preparing Employees for Travel Risks<\/a>.\" Risk Management. Accessed August 20, 2019.[\/footnote] Pre-trip preparation and planning is key, including evaluating the risks, setting up tracking systems, establishing communication processes and identifying sources of support in the event of crisis. Jacobsen notes that there are also a range of insurance options that can mitigate some of the risk of travel.","rendered":"<div class=\"textbox learning-objectives\">\n<h3>Learning Outcomes<\/h3>\n<ul>\n<li>Describe the process of managing Human Resources\u2013related risks<\/li>\n<\/ul>\n<\/div>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignright wp-image-2371\" src=\"https:\/\/s3-us-west-2.amazonaws.com\/courses-images\/wp-content\/uploads\/sites\/4056\/2019\/08\/11215654\/Screen-Shot-2019-11-11-at-1.56.27-PM.png\" alt=\"Decorative image.\" width=\"400\" height=\"267\" \/>Managing HR-related risks involves addressing the five critical areas mentioned above, including workplace violence and risk of international travel. The points that Lowers &amp; Associates recommends for addressing turnover are applicable to all five risk areas and represent basic block-and-tackle elements of HR management, including:<\/p>\n<ul>\n<li style=\"font-weight: 400;\">Use pre-employment screening<\/li>\n<li style=\"font-weight: 400;\">Establish fair benefits and compensation and review relative to market annually<\/li>\n<li style=\"font-weight: 400;\">Pay attention to employees\u2019 needs<\/li>\n<li style=\"font-weight: 400;\">Increase employee engagement<\/li>\n<li style=\"font-weight: 400;\">Create a positive work environment<\/li>\n<li style=\"font-weight: 400;\">Create clear, challenging career paths<\/li>\n<\/ul>\n<p>Specific recommendations to address:<\/p>\n<ul>\n<li style=\"font-weight: 400;\">Occupational fraud\n<ul>\n<li style=\"font-weight: 400;\">Establish and enforce a code of conduct<\/li>\n<li style=\"font-weight: 400;\">Develop a fraud prevention strategy<\/li>\n<li style=\"font-weight: 400;\">Implement prevention and detection processes, including risk assessment and internal audits; evaluate fraud controls on a regular basis<\/li>\n<li style=\"font-weight: 400;\">Conduct fraud awareness training and provide a means of reporting fraud online<\/li>\n<li style=\"font-weight: 400;\">Screen suppliers and third party providers<\/li>\n<\/ul>\n<\/li>\n<li style=\"font-weight: 400;\">Workplace violence\n<ul>\n<li style=\"font-weight: 400;\">Understand risk factors and develop and implement training and prevention programs. OSHA states that \u201cin most workplaces where risk factors can be identified, the risk of assault can be prevented or minimized if employers take appropriate precautions.\u201d<a class=\"footnote\" title=\"&quot;Workplace Violence.&quot; Occupational Safety and Health Administration, United States Department of Labor. Accessed August 20, 2019.\" id=\"return-footnote-842-1\" href=\"#footnote-842-1\" aria-label=\"Footnote 1\"><sup class=\"footnote\">[1]<\/sup><\/a><\/li>\n<li style=\"font-weight: 400;\">OSHA also emphasizes that establishing a zero-tolerance policy toward workplace violence\u2014applicable to all who come in contact with employees or alternative workers\u2014is one of the best protections.<\/li>\n<li style=\"font-weight: 400;\">For related resources, including risk assessment, training and prevention, refer to <a href=\"https:\/\/www.osha.gov\/SLTC\/workplaceviolence\/\" target=\"_blank\" rel=\"noopener\">OSHA&#8217;s\u00a0Workplace Violence page<\/a>.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<div class=\"textbox exercises\">\n<h3>Perspective Point<\/h3>\n<p>Lowers &amp; Associates notes that although the probability of catastrophic workplace events is low, the potential damage to people, brands and profits justifies risk mitigation.<\/p>\n<\/div>\n<div class=\"textbox tryit\">\n<h3>Practice Question<\/h3>\n<p>\t<iframe id=\"assessment_practice_4c5e90b5-6f5b-4810-84ea-3d4f7517cb8f\" class=\"resizable\" src=\"https:\/\/assess.lumenlearning.com\/practice\/4c5e90b5-6f5b-4810-84ea-3d4f7517cb8f?iframe_resize_id=assessment_practice_id_4c5e90b5-6f5b-4810-84ea-3d4f7517cb8f\" frameborder=\"0\" style=\"border:none;width:100%;height:100%;min-height:300px;\"><br \/>\n\t<\/iframe><\/p>\n<\/div>\n<div id=\"attachment_2373\" style=\"width: 210px\" class=\"wp-caption alignright\"><img loading=\"lazy\" decoding=\"async\" aria-describedby=\"caption-attachment-2373\" class=\"wp-image-2373\" src=\"https:\/\/s3-us-west-2.amazonaws.com\/courses-images\/wp-content\/uploads\/sites\/4056\/2019\/08\/11215833\/Meng_Wanzhou_at_Russia_Calling_Investment_Forum.jpg\" alt=\"Meng Wanzhou\" width=\"200\" height=\"268\" \/><\/p>\n<p id=\"caption-attachment-2373\" class=\"wp-caption-text\">Meng Wanzhou at Russia Calling! Investment Forum.<\/p>\n<\/div>\n<p>Although geo-political risks have always been a part of conducting business internationally, trade tensions have recently escalated into economic warfare, increasing the stakes in both financial and human terms. The attempt in 2019 to extradite and prosecute Chinese technology firm Huawei\u2019s CFO Meng Wanzhou has resulted in retaliatory arrests and harassment of American business executives and Canadians in China.<\/p>\n<p>In an article for Risk Management magazine associate editor Adam Jacobson notes that \u201ccompanies have a legal obligation, known as a \u2018duty of care,\u2019 to prepare employees and address potential risks they may face while traveling.\u201d<a class=\"footnote\" title=\"Jacobson, Adam. &quot;Preparing Employees for Travel Risks.&quot; Risk Management. Accessed August 20, 2019.\" id=\"return-footnote-842-2\" href=\"#footnote-842-2\" aria-label=\"Footnote 2\"><sup class=\"footnote\">[2]<\/sup><\/a> Pre-trip preparation and planning is key, including evaluating the risks, setting up tracking systems, establishing communication processes and identifying sources of support in the event of crisis. Jacobsen notes that there are also a range of insurance options that can mitigate some of the risk of travel.<\/p>\n\n\t\t\t <section class=\"citations-section\" role=\"contentinfo\">\n\t\t\t <h3>Candela Citations<\/h3>\n\t\t\t\t\t <div>\n\t\t\t\t\t\t <div id=\"citation-list-842\">\n\t\t\t\t\t\t\t <div class=\"licensing\"><div class=\"license-attribution-dropdown-subheading\">CC licensed content, Original<\/div><ul class=\"citation-list\"><li>Managing Risk in Human Resources. <strong>Authored by<\/strong>: Nina Burokas. <strong>Provided by<\/strong>: Lumen Learning. <strong>License<\/strong>: <em><a target=\"_blank\" rel=\"license\" href=\"https:\/\/creativecommons.org\/licenses\/by\/4.0\/\">CC BY: Attribution<\/a><\/em><\/li><\/ul><div class=\"license-attribution-dropdown-subheading\">CC licensed content, Shared previously<\/div><ul class=\"citation-list\"><li><strong>Authored by<\/strong>: mohamed_hassan. <strong>Provided by<\/strong>: Pixabay. <strong>Located at<\/strong>: <a target=\"_blank\" href=\"https:\/\/pixabay.com\/illustrations\/checklist-business-businesswoman-3693113\/\">https:\/\/pixabay.com\/illustrations\/checklist-business-businesswoman-3693113\/<\/a>. <strong>License<\/strong>: <em><a target=\"_blank\" rel=\"license\" href=\"https:\/\/creativecommons.org\/about\/cc0\">CC0: No Rights Reserved<\/a><\/em>. <strong>License Terms<\/strong>: Pixabay License<\/li><li>Meng Wanzhou at Russia Calling! Investment Forum. <strong>Provided by<\/strong>: Wikimedia Commons. <strong>Located at<\/strong>: <a target=\"_blank\" href=\"https:\/\/commons.wikimedia.org\/wiki\/File:Meng_Wanzhou_at_Russia_Calling!_Investment_Forum.jpg%20and%20www.kremlin.ru\">https:\/\/commons.wikimedia.org\/wiki\/File:Meng_Wanzhou_at_Russia_Calling!_Investment_Forum.jpg%20and%20www.kremlin.ru<\/a>. <strong>License<\/strong>: <em><a target=\"_blank\" rel=\"license\" href=\"https:\/\/creativecommons.org\/licenses\/by\/4.0\/\">CC BY: Attribution<\/a><\/em><\/li><\/ul><\/div>\n\t\t\t\t\t\t <\/div>\n\t\t\t\t\t <\/div>\n\t\t\t <\/section><hr class=\"before-footnotes clear\" \/><div class=\"footnotes\"><ol><li id=\"footnote-842-1\">\"<a href=\"https:\/\/www.osha.gov\/SLTC\/workplaceviolence\/\" target=\"_blank\" rel=\"noopener\">Workplace Violence<\/a>.\" Occupational Safety and Health Administration, United States Department of Labor. Accessed August 20, 2019. <a href=\"#return-footnote-842-1\" class=\"return-footnote\" aria-label=\"Return to footnote 1\">&crarr;<\/a><\/li><li id=\"footnote-842-2\">Jacobson, Adam. \"<a href=\"http:\/\/www.rmmagazine.com\/2019\/06\/01\/preparing-employees-for-travel-risks\/\" target=\"_blank\" rel=\"noopener\">Preparing Employees for Travel Risks<\/a>.\" Risk Management. Accessed August 20, 2019. <a href=\"#return-footnote-842-2\" class=\"return-footnote\" aria-label=\"Return to footnote 2\">&crarr;<\/a><\/li><\/ol><\/div>","protected":false},"author":17,"menu_order":15,"template":"","meta":{"_candela_citation":"[{\"type\":\"original\",\"description\":\"Managing Risk in Human Resources\",\"author\":\"Nina Burokas\",\"organization\":\"Lumen Learning\",\"url\":\"\",\"project\":\"\",\"license\":\"cc-by\",\"license_terms\":\"\"},{\"type\":\"cc\",\"description\":\"\",\"author\":\"mohamed_hassan\",\"organization\":\"Pixabay\",\"url\":\"https:\/\/pixabay.com\/illustrations\/checklist-business-businesswoman-3693113\/\",\"project\":\"\",\"license\":\"cc0\",\"license_terms\":\"Pixabay License\"},{\"type\":\"cc\",\"description\":\"Meng Wanzhou at Russia Calling! Investment Forum\",\"author\":\"\",\"organization\":\"Wikimedia Commons\",\"url\":\"https:\/\/commons.wikimedia.org\/wiki\/File:Meng_Wanzhou_at_Russia_Calling!_Investment_Forum.jpg and www.kremlin.ru\",\"project\":\"\",\"license\":\"cc-by\",\"license_terms\":\"\"}]","CANDELA_OUTCOMES_GUID":"0d21e114-c8da-426f-8f36-815ab76ee7d9, 446b3068-1180-4cd2-862a-528bc7f9e5da","pb_show_title":"on","pb_short_title":"","pb_subtitle":"","pb_authors":[],"pb_section_license":""},"chapter-type":[],"contributor":[],"license":[],"class_list":["post-842","chapter","type-chapter","status-publish","hentry"],"part":825,"_links":{"self":[{"href":"https:\/\/courses.lumenlearning.com\/wm-humanresourcesmgmt\/wp-json\/pressbooks\/v2\/chapters\/842","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/courses.lumenlearning.com\/wm-humanresourcesmgmt\/wp-json\/pressbooks\/v2\/chapters"}],"about":[{"href":"https:\/\/courses.lumenlearning.com\/wm-humanresourcesmgmt\/wp-json\/wp\/v2\/types\/chapter"}],"author":[{"embeddable":true,"href":"https:\/\/courses.lumenlearning.com\/wm-humanresourcesmgmt\/wp-json\/wp\/v2\/users\/17"}],"version-history":[{"count":11,"href":"https:\/\/courses.lumenlearning.com\/wm-humanresourcesmgmt\/wp-json\/pressbooks\/v2\/chapters\/842\/revisions"}],"predecessor-version":[{"id":3412,"href":"https:\/\/courses.lumenlearning.com\/wm-humanresourcesmgmt\/wp-json\/pressbooks\/v2\/chapters\/842\/revisions\/3412"}],"part":[{"href":"https:\/\/courses.lumenlearning.com\/wm-humanresourcesmgmt\/wp-json\/pressbooks\/v2\/parts\/825"}],"metadata":[{"href":"https:\/\/courses.lumenlearning.com\/wm-humanresourcesmgmt\/wp-json\/pressbooks\/v2\/chapters\/842\/metadata\/"}],"wp:attachment":[{"href":"https:\/\/courses.lumenlearning.com\/wm-humanresourcesmgmt\/wp-json\/wp\/v2\/media?parent=842"}],"wp:term":[{"taxonomy":"chapter-type","embeddable":true,"href":"https:\/\/courses.lumenlearning.com\/wm-humanresourcesmgmt\/wp-json\/pressbooks\/v2\/chapter-type?post=842"},{"taxonomy":"contributor","embeddable":true,"href":"https:\/\/courses.lumenlearning.com\/wm-humanresourcesmgmt\/wp-json\/wp\/v2\/contributor?post=842"},{"taxonomy":"license","embeddable":true,"href":"https:\/\/courses.lumenlearning.com\/wm-humanresourcesmgmt\/wp-json\/wp\/v2\/license?post=842"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}