Airmic: Reevaluating People Risk Management A Necessity
Airmic’s report, Managing Risk−The Human Factor, sheds light on the “unprecedented volatility with regards to people risk” and stresses the importance of HR, benefits, and risk professionals working together more closely.
The report published in December 2019 in association with Arthur D. Little, Willis Towers Watson and Zurich, positions people risk around the people themselves instead of creating newer categories.
This allows a view where risks which may have been treated as separate categories, and thereby also treated as separate processes, are now shown to be part of a larger risk framework acting as a more integrated whole.
The guide provides a practical approach to the benefits of closer cooperation between HR and risk functions with examples of strategic advantages for both: by doing away with silos, people risk can be controlled making for a greater value placed on all aspects of risk management.
As Julia Graham, Airmic’s deputy CEO and technical director states, “Risk professionals have tended to think about people risk as risk to employees, whereas HR professionals tend to view it as the risk to the organization from human factors.”
“Both perspectives are equally important, so it was surprising to us how little interaction there is between the two functions. Risk and HR can really support each other and enhance the strategic value of their roles.”