Employee Risk Management is evolving by the day, and so are the techniques to control it. In 2013 a study comprised of 230 board members from numerous organizations cited that reputational risk is one of their highest concerns. This made up for 73% of the overall vote. What’s surprising is that this surpasses financial risk which faced an increase of 19% from 2012. The data may sound old, but has steadily seen an increase over the years.
With a rise of social media and continuous development of the web, business risks seem to be creeping up from everywhere. So here’s the question … can a single social media post or a tweet really make that much of a difference? In short, the answer is yes.
So let’s define risk management…
With danger looming around every corner, one of the most common risk management techniques falls under the role of company insurance policies and risk retention. Sounds simple enough, except for the fact that they’re reactive rather than preventative in nature, and oftentimes leave out the most important part of any organization: THE PEOPLE.
It sounds like one of those scare tactics that were used in infomercials back in the 90’s, but really it’s common sense. Put the wrong people in the right position and – BOOM – you have a liability you never saw coming. People risk is that one weak link in the chain, the person who just – doesn’t -get – it. Put them in a position of power and it may influence the whole organization, department or team.
People risk is often disguised as that one bad hire and an awfully expensive one that too. At QuadraBay we know what that looks like, falsified qualifications, or maybe even experience they never had, perhaps even a company that never existed. In our opinion, a bad hire can jeopardize the success of any organization, big or small.
Avoiding People Risk
Risk management is having the ability to determine and strategize how you hire the right candidate and where they’ll fit in best. It’s the ability to minimize the risk of a possible unknown and new hire and minimizing the damage that’s done if it doesn’t work out. More importantly, it’s taking a proactive preventative approach rather than a reactive approach. At QuadraBay we help companies, clients and governments mitigate that risk through our comprehensive background screening services and verification solutions. We build safer futures.