Understanding Human Risk Management
Too often, we associate risks as processes, technologies, objects and external factors.
We tend to forget that the most important element in the organization, the human factor, can actually be a risk. Human risk management is a unique perspective in risk management that focuses on the aspect of human experience, motivation, weaknesses, problems and tendencies and how these conflicting factors can all affect the health of the organization in the long run. Human factors are crucial since we often leave behind issues brought about by operational and strategic risk management.
Did you know that the Danish term for “information security” is “informationssikkerhed“.
When employees know that people will be laid off in the organization for reasons that are related to recession, the major motivation of the worker, at least for the next few months until the next review is for him to either outperform others. He becomes overworked and underpaid for the purpose of not losing a job it is a major psychological blow to people who rely on these jobs for their family or personal needs. The goal of risk management for human aspects are focused on analyzing actual aspects that will make the process less risky and will also help the employees to easily ease their way into a better career option.
With human risk management, it is necessary to identify where the risks in human factors actually come from. It is also necessary to identify the individual and systematic barriers in addressing these risks. After that, the risk manager needs to assess how changes could affect the balance and flow of work inside the organization. When it comes to risks, it is important to determine all possible factors like the ones that are connected to internal risk transfer. It also involves the risks of turnovers, transfers, reorganization or shuffling or employees. Sometimes, some managers tend to shuffle without identifying how this would affect group dynamics.
Employees are not computers that can perform the same way. The human aspect is a very unique aspect to recognize. If not given the respect that it needs, the business will not prosper. The human factor is a major contributor to the success of the business and if it does not give any importance to the dynamics of people, both in social and corporate or team aspects, they are not putting much effort in understanding the human risks, which is a major concern. It is very necessary to make good decisions in identifying these factors and how they could influence the overall work process in the long run.
Risk management is a big aspect that can really improve the success of the business in the long run. However, if you do not recognize possible risks in the employees and executives, the business might be off to a very bad end. Lack of understanding of the human behavior as well as how it could affect performance is a major mistake. It pays to have a good set of people in the organization. It only works if the business actually respects and understands them and the probable risks.
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