Risk Management
Risk Management
What you will learn
- Prioritize risk by combining likelihood and impact.
- Distinguish avoidance, mitigation, transfer, and acceptance.
- Explain HR's role in business continuity and health crises.
- Handle violence threats and safety reports correctly.
HR risks are varied: lawsuits, workplace injuries, loss of a key person, health crises, and workplace violence. Handling them well starts with systematic assessment, not reaction after harm occurs.
Risk response strategies
| Avoid | Stop the activity that creates the risk. |
|---|---|
| Mitigate | Reduce likelihood or impact, such as policy training. |
| Transfer | Shift the financial impact to another party, such as employment practices liability insurance. |
| Accept | Bear the risk without action when treatment costs more than its impact. |
Violence threats are neither ignored nor instantly punished
If an angry employee says they'll make their manager pay, the right answer is to take it seriously and follow threat assessment procedures with security. Ignoring it is dangerous, and immediate firing without inquiry may escalate things.
What matters on the exam
- Key-person risk is addressed through succession planning and knowledge transfer.
- In a health crisis: employee safety, remote work where possible, regular communication, and the continuity plan.
- A safety report is acted on immediately, and the reporter is thanked and protected from retaliation.
Quick check
Answer in your head first, then reveal.
Buying employment practices insurance. Which strategy?Reveal the answer
Risk transfer.
How is a risk prioritized?Reveal the answer
By combining likelihood and severity of impact.
What is a business continuity plan for?Reveal the answer
Keeping critical operations running during and after crises.
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Your next step
Read the lesson, then mark it complete
Sources
Used to verify the facts. The writing is original to Passuit.