Strategy · HR glossary

Risk Management

Risk management identifies uncertainties that could affect objectives and decides how to respond. It considers likelihood, consequences, controls and who is responsible for monitoring the risk.

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Example

An employer identifies dependency on one payroll specialist, assesses the effect of their absence and trains a backup while documenting the process.

What to keep in mind

Risk scores are decision aids, not precise predictions. Review assumptions and control effectiveness, and distinguish actions that reduce a risk from plans that only respond after it occurs.

Risk Management

Example

What to keep in mind

Further reading