hrtoolbox
Checking Off HR Risk
by Sebastian Bitticks
A
s HR professionals, your scope
stretches to every corner of your
organisation, from finance to
working conditions to security. In theory,
at least, company policies and procedures
govern every area. That puts HR in the
hot seat for a wide range of potential
risks facing your company: health and
tort, reputation, property and personal
data. Ensuring compliance with labour
ordinances is just the beginning.
Good HR professionals know to ask
“What could go wrong?” around every
facet of their business. This does not have
to be done alone, as every employee can
help identify areas in their departments
where problems can arise. Are there
possibilities of personal injuries? Could
working conditions contribute to health
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problems? What working practices
might encourage (or seem to encourage)
discrimination?
The checklist at right serves as
a good overview for many of the
areas covered by HR risk. Of course,
every organisation is different, and a
risk analysis should be as specific as
possible. A risk assessment for your
organisation should be detailed and refer
to your business practices. Regardless,
this template makes a good starting point
and a valuable refresher.
Risk management must be regularly
returned to. Just as policies and
procedures must be regularly updated,
the changing work environment requires
frequent reassessments of the risks
involved. While taking the time and
resources for a thorough risk review might
fall low on the priorities of many business
leaders, without a conscious reappraisal,
an organisation could find itself suddenly
vulnerable. Every organisation should
review its risk management systems
annually.
Clearly written policies and
procedures form the greatest defence
against risk across the organisation. They
ensure a clear and consistent message has
been communicated to all employees,
and remove the possibility of different
supervisors applying different standards.
In the case of legal action, they serve
as a valuable record. Since much HR
risk comes from civil disputes, any risk
management system should incorporate
legal advice.
 hrtoolbox

HR Risk Checklist

HR Activity Potential Risk Potential Considerations

Who has signing authority?

Compensation and benefits •• Financial abuse How many signatures are required?
Are there checks and balances?

Was a complete screening completed on potential

•• Discriminatory practices applicants?
Is there a set probationary period?
•• Hiring unsuitable or unsafe
Hiring Were promises made to the candidate that cannot be
candidates
honoured?
•• "Wrongful" hiring Did the employee sign off on the policies and contract of
employment before being hired?

Do we provide safe working conditions and do we conduct

safety checks regularly?
Do we provide adequate training for staff?
Occupational health and •• Environmental
Do we ensure the use of appropriate clothing and safety
safety •• Personal injury or death
equipment?
Do we have adequate policies, procedures, and a
committee in place?

•• Abuse
•• Reputation in the Do we provide sufficient orientation and training?
Employee supervision community Do we have a performance management system in place?
•• Release of personal Are personal information protection guidelines followed?
information

Do we have clearly written position descriptions for all

positions?
Do we follow up when the parameters of the job description
are not respected?
Do we provide thorough orientation and training?
•• Abuse Do we provide an employee handbook?
Do we have comprehensive policies and procedures?
Employee conduct •• Reputation in the
Do we provide ongoing training about our policies and
community procedures?
Do we retain written records of performance issues?
Do we ensure that organisational valuables are secure?
Do we have cash management procedures?
Do we have adequate harassment policies and
procedures?

Do we retrieve organisational information and equipment

•• Property that a dismissed employee used (especially from home)?
•• Reputation in the Do we ensure that all access codes, passwords, etc are
Exiting employee
community de-activated?
•• Compensation Do we conduct an exit interview?
Do we record lieu time and vacation balances?

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