RISK MANAGEMENT IN HR AND ITS ROLES

 Performance appraisal is the continuous assessment,
 RISK MANAGEMENT IN HR AND ITS ROLESin cooperation with theemployee, of how she or he is
 doing relative to the standards and expectations laid
Abstract :out in the job description and follow up training.
This paper aims to provide an introduction to some ofPerformance appraisal also includes dentifying with the
the key risk management roles, issues and processes.employee whatever corrective action may be
This paper is not intended to be an all-singing, allnecessary and steps by which the employee can
dancing description of the risk management industry.advance his or her career.
Rather, we hope that it provides a summary of theCompensation includes the monetary and non
themes and practices that we use in risk management.monetary rewards received by employees.
This may enable actuaries to understand how riskThe management team and employees carefully
management ideas and processes can addvalue tochoose these rewards. The rewards need to be
their organisation and how they can use thesefeasible for the organization while helping satisfy
concepts in their work.employee needs.
DEFINITION OF RISK MANAGEMENT:Discipline is giving each employee expectations, rules,
"Risk is the threat that an event or action will adverselypolicies and procedures and thenworking with the
affect an organisation's ability to maximise stakeholderemployee to get behavior consistent with employer
value and achieve its business objectives and businessexpectations.
strategies. Risk arises as much from missedHuman resource activities lead to four important
opportunities as it does from possible threats."implications for risk management.
Basically, risk management is the sum of all proactive 
management-directed activities within a program that1)      These activities are necessary to keep
are intended to acceptably accommodate thehuman resources in harmony with          
possibility of failures in elements of the program.the       riskmanagement tools adopted by the
"Acceptably" is as judged by the customer in the finalmanagement team. Risk management decisions are
analysis, but from an organization's perspective acarried out by people. Having the “right” people
failure is anything accomplished in less than ain place, trained, motivated and rewarded are essential
professional manner and /or with a less-than-adequateto success in risk management.
result. 2)      Human resource calamities, e.g., divorce,
The key words are:chronic illness, accidental death, canhamper carefully
- proactivemade and appropriate risk management decisions.
- managementRisk management should anticipate the likelihood of
- accommodatehuman resource calamities. Human resource
- acceptablycontingency planning needs to be an integral part of
- professionalrisk management.
- possibility 3)      No management team stays together
It is possibilities that are being accommodated. It isindefinitely. Every farm will eventually havedifferent
management's job to do the planning that willmanagers or be out of business. Management
accommodate the possibilities. The customer is thesuccession is a significant source of risk.Human
final judge, but internal goals should be to a higher levelresource considerations, plus legal and financial
than customer expectations.considerations, directly affect success in management
WHAT IS RISK MANAGEMENT?succession and thus risk management. Management
Risk Management is the process of protecting ansuccession requires each of the human resource
organization from financial harm by identifying,management activities: job analysis, job descriptions,
analyzing, financing, and controlling risk at the lowestselection, training, interaction, performance appraisal,
possible cost. Effective Risk Management is acompensation and discipline.
progression of actions that are taken with the purpose 
of minimizing losses or injuries within the organization.4)      Human resource performance evaluation
Ascendant HR believes that your employees are yourshould be tied to risk management.
company’s most valuable resource.Risk management strategies are carried out through
A well-designed insurance and risk managementpeople. Human resource failures can cause the best
program allows you to use your financial and humanplanned risk management strategies to fail. Risk
resources to pursue your company’s strategicmanagement depends on explicit duties being specified
goals.in managers’ job descriptions, delegation of power
ROLES OF RISK MANAGEMENT:and authority to manage risk following indicated
There are two types of Roles in Risk Management,guidelines, and responsibility at the action level of risk
They are:management.
1)      People are a source of risk,e.g., shortage of 
employees, people doing sloppy work, an employeeUnderstanding these activities helps explain the
refusing to take on additional responsibility or a keyrelationship between human resources and risk.Failure
employee leaving two months after completion of ato successfully carry out these activities increases risk
one-year training program.and penalizes the organization by not taking advantage
2)      People are important in handling risk, e.g.,of what its people could be contributing.
people using their ingenuity to solve unexpected 
problems, employees going the extra mile for the goodMANAGER’S SKILLS :
of the organization, a key employee redesigning her 
own job to avoid unnecessary delays in getting workThe effective integration of Risk management and
done, or an employee persuading a talented friend tohuman resource management requiresthat managers
apply for a position in the business.have certain skills. Most important are:
 RISK MANAGEMENT OVERVIEW: 
The goal of Risk Management is to identify, assess,1)      Leadership
and resolve risk items before they become threats to2)      Communication
a specific project or to the organization as a whole.3)      Training, Motivation
Risk Management plans should include short-term and4)      Conflict Management and Evaluation.
long-term risks to project schedules, costs, and the 
functionality, adequacy and quality of project1) Leadership:
deliverables. Risk Management is an integral part of the 
overall quality assurance effort necessary to minimizeEvery human resource manager has leadership
the major sources of rework, schedule and costresponsibility. No group of people comesclose to its
overruns, and performance and quality degradation.potential without effective leadership. Planning,
Risk Management consists of the following two broadorganizing, staffing and controlling can substitute to
categories of activities: risksome extent for leadership. Delegation of authority and
Assessment and risk control.responsibility and other tools for empowering
 employees decrease the need for leadership.
- Risk AssessmentMotivation, trust and careful development of
- Risk Identificationprocedures and policies are also helpful. Still, each ship
- Risk Analysisneeds a captain. Some leadership is necessary.
- Risk Prioritization 
- Risk Control 
- Risk Management Planning2) Communication:
- Risk Resolution 
- Risk MonitoringCommunication is an essential skill for effective human
THE HUMAN RESOURCE MANAGEMENT ANDresource management. Inhuman resource
RISK MANAGEMENT INTERFACE:management, clear messages, listening and use of
Like risk, human resources are pervasive in thefeedback are especially important. Interpersonal
business. Human resource managementis mostrelations, interviewing in the hiring process, building
effective when integrated with decision makingrapport in the management team and with employees,
throughout the business. This leads to recognition thatorientation and training, performance interviews, conflict
each production, financial and marketing decision has aresolution and discipline, all require communication.
human component or influence. Which choice is made,Mediocre communication skills tremendously
how the decision is carried out, the follow up andcomplicate these activities.
monitoring depend on people. Isolating management 
team and employee issues from production, financial3) Training, Motivation :
and marketing management frustrates people and 
creates unnecessary risk in a business enterprise.Training is helping people learn. Effective training
To understand fully how human resourcerequires teaching skills, anunderstanding of how adults
management and risk management areprefer to learn, patience, communication, a systematic
Interrelated one must understand human resourceapproach and evaluation of whether the training has
management. It is the staffing, training,development,been effective.
motivation, and maintenance of employees to help 
accomplish organizational goals. Effective humanMotivation of employees challenges every manager.
resource management also helps employeesEmployee motivation helps theorganization accomplish
accomplish their career goals.its goals while also helping workers accomplish their
Human resource management is a process that cancareer goals. No motivation recipe guarantees
be broken down into specific activities:employee motivation. Nevertheless, some managers
1)      Job analysis and writing job descriptionsare more effective than others in developing a work
2)      Hiringenvironment in which employees are consistently
3)      Orientation and trainingmotivated. These managers use a combination of:
4)      Employer/employee interactionsunderstanding and satisfying employee needs,
5)      Performance appraisal, compensation andcompensating fairly, making it possible for employees
disciplineto do their jobs with minimum frustration and treating
1) Job analysis and writing job descriptions :employees equitably. The skill to motivate employees
The first activity is job analysis and writing jobis nebulous yet real. The employers who are best at it
descriptions. Job analysis isdetermining the duties andhave usually worked long and hard to develop the skill.
skill requirements of a job and the kind of person to fillAttributing the ability to motivate people to nothing
it. Theemphasis is on what the farm needs rather thanmore than a natural gift understates how hard the
on who wants to be promoted or who could be easilybest human resource managers work to develop this
hired. The tasks that must be carried out to accomplishskill.
the firm’s goals determine duty and skill 
requirements. Job descriptions summarize for both 4) Conflict Management and Evaluation :
employees and employers just what a job entails: job 
title, duties, compensation, and skills, knowledge andConflict is inevitable in farm teams: among employees,
abilities to do the job. In family farm businesses, jobbetween employees and the management team and
descriptions for family members often include bothamong the management team. Managers must learn
management and labor responsibilities. Such ato deal with conflict rather than avoid it. Avoiding the
combination of responsibilities makes job analysis andconflict and its causes simply postpones the pain and
job descriptions more not less important in smallagony that come from personnel blowups. Conflict
businesses.management strategies provide the management
 team positive steps for addressing the conflict.
2) Hiring:Effectiveness with the strategies is an essential skill.
Is the next human resource management activity. The 
objective of hiring is tostaff each job with a personMost employees have a fervent desire for Evaluation,
who can succeed in the position. In today’si.e., information about their performance. Many
exceptionally tight labor market, hiring is one of thesupervisors find it extremely difficult to share
most difficult human resource activities. The positionperformance evaluations in an honest and helpful
must be described carefully and creatively to potentialmanner. Employees dread poorly done evaluations and
applicants. From among the pool of applicants,peopleevaluation interviews. Supervisors lacking evaluation
must be carefully chosen if they and the employer areskills combat their frustrations by postponement,
to have a successful relationship.inflated evaluations and vague communication. Both
 supervisors and employees need training in evaluation
3) Orientation and training:for it to be useful and pleasant for both parties.
The next activity after hiring is orientation and training. 
Orientation socializes newpeople to the business. It CONCLUSION:
introduces them to the firm’s mission, its history and 
its culture. It gives them the information essential forManagers’ paradigms, understanding of human
getting off to a good start. Training and experienceresource management and human resource skills
give the employees the knowledge, skills and abilitiesdetermine the success they will have with people. Like
necessary to succeed in the position.the rest of risk management, blaming others for
 management shortcomings neither solves problems
4) Employer/employee interactions:nor provides escape from the problems. The good
Day-to-day employer/employee interaction includesnews is that managers can make human resource
leadership, motivation, andcommunication that build onmanagement one of their Strengths. The result will be
hiring, orientation and training. Employer/employeebetter risk management, more effective management
interaction cannot make up for an ill-defined job, havingand greater satisfaction from working with people.
hired the “wrong” person or inadequate 
orientation and training. 
 Article by:
5) Performance appraisal, compensation and discipline: 
The last three activities are closely related:X.Queen Shanthana Mary
performance appraisal, compensation anddiscipline.M.