HR practitioners, how can you add more strategic value to your firm? By taking at look at the potential risks in your department and having the ability to evaluate and mitigate those risks.
What might some of those risks be? They could be wage and hour issues, or contractor versus employee status, or hiring and firing. Whatever your HR role, or whatever HR situation you get involved in, Michelle Blomberg, JD, MBA (Equinox Business Law Group) has some general advice for you.
Be aware of three key factors of risk:
- Probability (the likelihood of the event happening)
- Magnitude (the impact if the event occurs)
- Timing (the date of the occurrence)
Which risk do you address first?
You should focus on the most significant magnitude or impact, instead of focusing on the highest probability.
Assess the impact:
- Is there personal liability associated with it?
- What is the financial impact?
- What is the probability of it occurring?
- Whom will it affect?
The greater the potential impact, the more resources you should spend—quickly—to restore your systems or processes.
(From a webinar hosted by Terra Staffing Group, March 2014)
