TALENT RISK REGISTER

EVENT OWNER HASSAN ALHOTHAIFI

AUDITOR INTERNAL AUDIT TEAM
AREA RECRUITMENT/TALENT MANAGEMENT

Inherent Residual Risk

Area Risk Description Potential Impact Risk Category Observation Current controls, if any Risk Response Recommendation

Risk Score

Risk Score
Likelihood

Likelihood
Impact

Recruitment - Bluecollar No controls or defined processes for
recruitment
1) Perceived favouritism
2) Hiring of employees not suitable for the concerned job
3) Waste of valuable time on part of talent team
Impact
Operational It has been observed that while doing the recruitment, the Almost certain Extreme There are no current controls as of now except the Almost certain Extreme The Company should be clearly segregating and allocating
Strategic talent team has no authority to analyse and review the fact that final approval for such recuritments comes the responsibility of recuritment to the Talent team.
Financial vacant positions across the company or the number of from the President The talent team should have the authority to conduct
people required. Almost everytime, the request for hiring a analysis in terms of the actual number of people required
certain number of people under the blue-collar net comes for the jobs, arranging for the interviews, doing the first
from the respective GM and there is no check on ensuring level screening, experience analysis and then handing
whether the same number of people are required or not. over a certain pool of candidates to the technical team for
This might lead to ultimately terminating the employees as technical interviews.
there was no analysis done for the actual number of people
required.
These interviews happen on a recruitment campaign basis
where there is large number of applicants to be interviewed
within a very short period and HR does not have any time
for screening as well. The technical team has more say in
these interviews and HR is just arranging the interview. This
leads to talent team actually doing just the coordination
work for arranging the interviews without doing any first
level screening.

Recruitment - No controls or defined processes for 1) Perceived favouritism Operational It has been observed that there are some cases where even Almost certain Extreme There are no current controls as of now except the Almost certain Extreme The Company should be clearly segregating and allocating
Whitecollar recruitment 2) Hiring of employees not suitable for the concerned job Strategic the position is specifically created by the GM's for hiring a fact that final approval for such recuritments comes the responsibility of recuritment to the Talent team.
3) Waste of valuable time on part of talent team Financial certain candidate, all required forms are submitted to talent from the President
team, salary is finalised by the respective GM's and this is a
clear case of favouritism. GM's usually points out that the
talent team does not present them with qualified candidates
ahdn hence they have to take on this activity on their own
but that is not the case as per the talent team. For example:
As on the day of discussion i.e. 18th Sep, 2019, a position got
filled for the project engineer for the metals division where
the talent team identified 20 qualified candidates, presented
to respective GM. All of these candidates got rejected and
ultimately a person was hired having a bachelor’s degree in
accountancy, no experience of working in metals and happen
to be relative of someone in the organisation.
This way even the experience analysis cannot be done by
talent team in terms of whether a candidate with less
experience fulfils the required parameters and can be
brought in at lesser salary.
It has also been noticed that even the internal forms to be
used for recruitment are not beinf adhered to by the
respective GM's.

Performance Reviews No process for performance reviews in place 1) Under performing employees getting increments/bonuses Operational
or promotions
2) Perceived favouritism
Background Verification No process for background verification 1) Non qualified employees getting hired
2) Perceived favouritism
Iqama Renewals No controls on Iqama renewals 1) Loss of huge sums of money
2) Waste of valuable time spent on renewals
It has been observed that there have no performance Almost certain Extreme There are no controls as of now. Almost certain Extreme The Company should be designing a formal process for
Strategic reviews happened for the last two years. the performance reviews including at the very least,
Financial identification of KPI's for employees grade and
department wise, contribution to some specific
organisation goals and objectives among other things and
also taking input after benchmarking with industry
standards.
Operational It has been observed that company while doing the Almost certain Extreme There are no controls as of now. Almost certain Extreme The Company should be conducting background checks
Strategic recuritment does not conduct background or pre- for all candidates supposed to be hired. This can be done
Financial employment checks. This might lead to hiring employees not in-house or a third party consultant can be hired for the
suitable to the job or are under qualified or who has created same.
touble in the past.
There had been a case where an ex-employee had rejoined
AIC again, had created trouble for the management in the
past. Even after HR recommending not to go ahead with that
employee, all protocols were by-passed and employee was
hired.
Operational It has been observed that the instruction for employees Almost certain Extreme There are no controls as of now. Almost certain Extreme The Company needs to come up with a control
Strategic Iqama renewals is received by the talent manager from the mechanism basis the assessment to be conducted on all
Financial employee relations team, then Iqama is renewed and later such cases where the renewal was done and ultimately
on(usually within a short period), the talent manager comes within just a short period of time, concerned employees
to know that the concerned employees have been asked to were asked to leave. There is a great deal of money
leave the organisation. This renewal is 10,000 Saudi Riyals involved in this.
for one employee.
Live example: The talent team had sent the mail to
respective GM’s for the renewals to be undertaken and GM’s
approved it. Later on it was found that the employees were
terminated within a month itself. There was a loss of around
100,000 Saudi Riyals for firing of 10 employees.
Compliances Lack of controls on defining authority Valuable time spent on unrelated activities Compliances Strategic It has been observed that there are different entities within Almost certain Extreme There are no controls as of now. Almost certain Extreme The Company should clearly define the hierarchy in the
Financial the group like AIC Asfan, AIC Bahra, AIC Heavy Equipment organisation and set up clear roles and responsibilities
etc. having different municipality licenses, commercial for the employees.
registration certificates, labour offices, insurances etc.
One of the jobs, the manager of talent team has, is to sign
jointly for cash outflows like on cheques, transfers and
supplier payments. This is a joint signing between manager
of talent team, finance GM and GSD GM. There is a huge
obligation in terms of responsibility taken by the manager
by singing on these payments because if something wrong
happens, there would be involvement of the talent manager
also when technically the talent manager does not have
technical know-how for the respective process for which the
payments are to be made.

Code of Conduct No CoC policy in place 1) Unethical behaviours Operational It has been observed that a formal, documented and Almost certain Low There are no controls as of now. Almost certain Low The Company should be developing and implemeting a
2) Not understanding companys' values, mission and Strategic approved CoC policy is not in place. CoC policy. Also mechanism should be put in place to
objectives Financial monitor the deviations from the policy and appropriate
3) Weak intern-departmental coordination action taken.
Roles and No clear definition of roles and 1) Weak reporting lines or hierarchy Operational It has been observed that is no clear definition of roles and Almost certain Low There are no controls as of now. Almost certain Low The Company should establish appropriate lines of
Responsibilities responsibilities Strategic responsbilities. reporting, giving consideration to its size and the nature
of its activities.