HR Risk Management: Avoid These Fatal Risks!

Every company or organization needs employees to achieve their goals. Besides fulfilling the wage deal, the company must also create decent HR risk management. It is essential to be the bridge between the company and the employee to make a good relation possible. In the other side, a bad HR risk management can also risk the company stability. Here are some examples of mistakes in HR risk management that you can learn and of course, avoid.

Hr risk management

Unhealthy Workplace Culture

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Unhealthy workplace culture can be one of the obstacles in HR risk management. For example, unfair treatment between employees and poor leadership that can cause high employee turnover, decrease productivity, and hinders company growth.

Unplanned Work Accident and Medical Cost

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Some companies underestimate the importance of work safety guarantees. It can later become a threat to HR risk management. In addition to causing a decline in productivity, this problem can create swelling costs that companies must pay in the future.

Discrimination Against Employees

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The company may not do it on purpose, but there are often groups of employees who feel they are being treated unfairly by the company. One of its negative impacts is employees’ discrimination lawsuits, which can cause the downfall of the company’s image.

Communication and Management Mistakes in Employees Benefits Program

Lacking communication and poor program design can cause employees to misunderstand the benefits they are supposed to get. This problem can also lead to lawsuits. Such an issue is not only detrimental and time-consuming but can also bring down the company’s image.

Network and Data Security Problem

HR risk management must also pay attention to the possibility of hackers who can steal company data. Multiple security walls must be built to make sure that your data is safe. Moreover, a lack of security system can cause data loss and regulatory fines & penalties.


Another challenge of HR risk management is theft and embezzlement. This case usually triggered by employee dissatisfaction on salaries and other benefits. Therefore, companies should take various countermeasures, including paying more attention to employee prosperity. Thus, the company may build employee trust and loyalty in the long run.

Training Failure

In general, the causes of companies failing to provide training and competence include lacking quality programs that are not aligned with the company goal which may lead to a bad impact in the future. Training failure has a high risk of causing work injuries, hacking events, even to the harmful effects that can cause death.


The most common problem of HR risk management is employee turnover. High employee turnover costs can paralyze the company. Besides, research also shows that losing one employee can cost the company an amount equal to a multiple of the employee’s annual salary. Therefore, you need to calculate every number that you spend carefully.

Human Resource risk management should exist in recruitment and daily operations process. However, the key to take a proactive approach so that you can make good human resource planning is again on you and yours alone.

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