Why Managing People and Culture Risk is the Key to Organisational Success
People are an organisation’s greatest asset and its greatest operational risk to business success. However, people and culture risk hasn’t always been at the top of the risk agenda. As organisations emerge from the Covid-19 crisis it is more important than ever that it becomes a priority.
The Global Financial Crisis of 2007/08, the subsequent economic downturn and recovery has enabled HR to reflect on lessons learned and develop best practice, processes and principles that can mitigate people and culture risk. This has been further enhanced by the increased scrutiny and guidelines set out by the financial regulators, bringing in regulation focused on conduct and culture such as the Senior Manager and Certification Regime (SMCR). While often seen as a Compliance responsibility, increasingly firms are placing this at the door of Human Resources departments.
The Covid-19 crisis has added additional dimensions and risks related to people and culture that will continue for the foreseeable future. How we work and how our people adapt in the post Covid-19 world is a key area of debate, and so an area that comes with significant people and culture risk that will need to be managed.
Maintaining business success in an increasingly complex environment requires a proactive and coordinated solution to risk. For Human Resources professionals this means managing the people and culture related risks to the operational delivery of the business strategy. It does this by enabling HR professionals to manage, mitigate and control the risks to their day-to-day processes and the achievement of their people, culture and regulatory objectives.
To support Human Resources professionals, KRM22 has announced the launch of our new People and Culture Risk Cockpit to our suite of risk management solutions. This risk management tool frees Human Resources professionals by enabling them to proactively manage and control all people and culture related risks. The People and Culture Risk Cockpit is built on KRM22’s Global Risk Platform, which brings together all of a firm’s risk applications to help drive down the cost and complexity of risk management.