Objectives

Upon completion of this course, participants will be able to:

• **Explain** the comprehensive framework of HR risk management and its alignment with enterprise risk management (ERM).
• **Identify** and categorize the major HR risks, including legal, compliance, safety, and reputational risks.
• **Conduct** a systematic HR risk audit and develop a risk register with likelihood and impact scores.
• **Design** and implement targeted controls and mitigation strategies for high-priority HR risks.
• **Manage** the risks associated with data privacy, HR technology, and cybersecurity threats.
• **Integrate** a risk-based approach into key HR processes, such as hiring, terminations, and investigations.
• **Establish** a continuous monitoring and reporting mechanism for key HR risk indicators.
• **Advise** executive leadership on the organization's overall human capital risk profile.

Target Audience

• HR Leaders and Managers overseeing compliance and policy development.
• HR Business Partners (HRBPs) managing employee relations and operational risk.
• Internal Audit, Compliance, and Legal professionals who interface with HR.
• HR Operations and HRIS Specialists concerned with data and technology risk.
• Any professional responsible for mitigating organizational liability through people practices.

HR risk audit simulation (identifying risks in a case company), Case studies on HR legal violations and their costs, Group exercise on calculating risk exposure using the risk matrix, Role-playing an internal investigation scenario, Discussion on ethical dilemmas and risk tolerance, Workshop on designing targeted risk controls.

Outline

Unit 1: Foundations of HR Risk Management

HR Risk in the ERM Context

• Defining HR risk and its role within the Enterprise Risk Management (ERM) framework.
• The four major categories of HR risk: Compliance, Operational, Strategic, and Financial.
• Case studies illustrating the high cost of unmitigated HR risk (e.g., litigation, safety fines).
• The legal duty of care and due diligence for HR professionals.

The HR Risk Management Cycle

• Introduction to the four-step risk process: Identification, Assessment, Mitigation, Monitoring.
• Tools for risk identification: Audits, process mapping, and incident analysis.
• Creating an HR Risk Register: Scoring likelihood and impact (the risk matrix).
• Determining the organization's risk tolerance for various HR areas.

Unit 2: Compliance and Legal Risk Mitigation

Employment Law and Discrimination Risk

• Review of key labor laws (e.g., Title VII, ADA, FMLA) and common litigation pitfalls.
• Managing risk in the hiring process: background checks, screening, and interview questions.
• Mitigating risk in compensation and pay equity practices.
• Risk-averse strategies for performance management and terminations.

Health, Safety, and Workplace Violence

• The role of HR in OSHA compliance and workplace safety programs.
• Developing policies and training to mitigate workplace harassment and violence risk.
• Managing the risk of poor employee well-being and mental health issues.
• Crisis planning and emergency response procedures for safety risks.

Unit 3: Operational and Financial Risk

Operational Process Risk

• Identifying process gaps that create compliance failures (e.g., I-9 forms, payroll errors).
• Using internal audits and process controls to ensure operational accuracy.
• Managing the risks associated with contingent workforce and independent contractors.
• Developing a robust internal investigation protocol for policy violations.

Financial and Data Risk

• Quantifying the financial exposure of key HR risks (e.g., lawsuits, high turnover).
• Risk management in compensation and benefits administration (e.g., fiduciary duties).
• HR data privacy and security risks (GDPR, CCPA) and mitigation strategies.
• The risk of outdated or poorly integrated HR technology systems.

Unit 4: Strategic and Cultural Risk Management

Strategic Workforce Risk

• The risk of critical skill gaps and the inability to execute strategic goals.
• Managing the risk of poor succession planning and key person dependency.
• The strategic risk of high employee turnover and low engagement.
• Risk mitigation strategies through Strategic Workforce Planning (SWP).

Reputational and Cultural Risk

• Assessing the risk of a toxic work environment and poor ethical culture.
• Managing public relations and reputation risk during HR crises (e.g., mass layoff).
• The role of a 'speak-up' culture in identifying and mitigating fraud and ethical risk.
• Training leaders and employees to be ethical role models and risk managers.

Unit 5: Implementing and Monitoring Controls

Designing and Implementing Controls

• The difference between preventive, detective, and corrective controls in HR.
• Developing risk-based policies, procedures, and training programs.
• Implementing technology controls (e.g., system access, data encryption).
• Strategies for communicating the risk management policy and culture.

Continuous Monitoring and Reporting

• Identifying and tracking Key Risk Indicators (KRIs) for the HR function.
• Designing a risk dashboard for continuous monitoring and reporting to the Board.
• The role of internal audit in reviewing HR risk and compliance.
• Personal action plan for initiating an HR risk audit in your organization.