National surveys of risk managers identify human capital related risks as one of the most important risks facing organization…and one of the least effectively managed. Meanwhile CEO global surveys concerning high-impact global risks consistently rank the “availability of key skills” as a critical risk…a risk — if not effectively managed — that can negatively affect the achievement of strategic and business objectives, negatively affect competitiveness, and hamper an organization’s ability to innovate.
HR experts and business leaders further note that misaligned, ineffective, and improper human capital management policies, practices, and processes create financial, operational, and reputational risks that can threaten an organization’s bottom line, adversely impact sustainability, and reduce the organization’s value for its stakeholders.
Conversely, effective human capital risk management can create a competitive advantage, create new business development opportunities, enhance the effective deployment of resources, and create value. Thus the benefit from HR audits.
This workshop addresses the benefits, procedures, and methodology of managing HR related risks. It reviews the issue of human capital risk management and its impact on the organization. It further reviews key risk management and human capital management concepts, discusses methods of assessing risks, evaluates human capital KPIs, KRIs, and scorecards, and evaluates risk control and risk mitigation strategies and techniques.
Learning Objectives:
- Key human resource risk management techniques and issues
- Critical issues of human resources management
- Risk management techniques in managing human capital related risks
- Human capital risk management effectiveness through the use of HR audits
- National benchmarking standards for human capital management
- Key Performance indicators (KPIs) and Key Risk Indicators (KRIs)
- Human capital metrics and human capital scorecards
- Human capital risk management to help your organization seize opportunities and reduce liabilities
Who will Benefit:
- HR
- Internal/External Auditors
- Risk Managers
- Compliance Officers
- Line Managers
- CFOs
- COOs
- CEOs
Topic Background:
To help assess their exposure and vulnerability to these human capital risks and to help enhance the management of their human capital asset, organizations are increasingly conducting HR risk management assessments. These assessments are no longer just checklists of human resources do’s and don’ts, they have become continuous, sustainable, comprehensive management assessments that provide assurances that risk are properly identified and management; that HR activities are aligned with business objectives; and that compliance and governance requirements are being met.
These risk assessments, which include HR audits, are used to protect and enhance the value of the organization’s human capital. They also assess the alignment of HR management activities with organizational objectives, help manage the organization’s human capital risks, identify and manage material risks; ensure compliance; assist in due diligence; and help assess and test internal controls. HR risk assessments additionally ensure that human capital adds value to the organization; that the organization’s human capital makes the organization more competitive; that it helps the organization achieve its business objectives; and that the organization clearly identifies and manages its human capital risks and opportunities.
Thus, HR risk management is increasingly seen as an important addition to the organization’s planning and budgeting activities and helps the organization identify critical risks that can have a significant impact — either positively or negatively — on the organization.
- 08.30 AM - 09.00 AM: Registration
- 09.00 AM: Session Start
- Session One: Introduction to HR Risk Management
- Background of HR risk management
- Key HR risk management concepts
- Identifying key HR risk management issues
- Developing an HR risk management plan
- Session Two: Assessing Human Capital Risks
- Discussion of risk management issues
- Determining human capital risks
- Developing Key Risk Indicators (KRIs)
- Discussion of human capital risk mitigation and risk appetite
- Exercise: The Employment Practices Liability Risk Assessment Tool
- Exercise: Mapping capital human risks
- Session Three: Developing HR Metrics
- Discussion of HR metrics
- Determining relevant human capital measures
- Developing Key Performance Indicators (KPIs)
- Developing HR audit dashboard
- Session Four: HR Audit Model
- Discussion of the critical components of an HR audit
- Discussion of internal controls
- Discussion of internal audit activities
- Exercise: The HR Audit Worksheet
- Session One: Introduction to HR Audits
- Background of HR audits
- Evolution of HR audits
- Developing an HR audit plan
- Identifying key HR audit issues
- Exercise: Pre-HR Audit Questionnaire
- Session Two: Assessing Strategic Alignment
- Assessing of the value of human capital
- Assessing your employment brand
- Assessing work force needs
- Assessing employee commitment and engagement
- Discussion of employee surveys to validate audit findings
- Exercise: Mapping employee commitment
- Session Three: Assessing HR Management Related Documents
- Assessing employment posters and notices
- Assessing job descriptions
- Assessing employee application and other hiring forms
- Assessing employee files
- Discussion of employee handbooks
- Exercise: Review Survey Report on Employee Handbook Policies and Practices
- Session Four: Assessing HR Management Processes and Practices
- Assessing the recruitment, selection and hiring process
- Assessing performance management
- Assessing employee relations
- Assessing the discipline and termination process
- Discussion of Technology
- Session Five: Practical Applications of HR Audits
- Identifying to HR audit stakeholders
- Discussion of HR audits for vendors, suppliers, and contractors
- Discussion of HR audits in mergers and acquisitions
- Discussion reporting and implementing HR audit results
Ronald Adler, MBA
President-CEO, Laurdan Associates, Inc.
RONALD ADLER, M.B.A., is the president-CEO of Laurdan Associates, Inc., a human resource management consulting firm, and is an internationally recognized thought leader on HR audits. Mr. Adler specializes in HR auditing consulting and products, human capital risk assessment and management, benchmarking and HR metrics, strategic HR, employee surveys, and general HR management issues. Mr. Adler has more than 40 years of HR consulting experience working with U.S. and international firms - including the United Nations and the National Bank of Georgia, Tbilisi, Georgia -- small businesses and non-profits, insurance companies and brokers, and employer organizations.
Mr. Adler is a consulting expert on work force, employment practices, and unemployment insurance issues to The Wall Street Journal, HR Magazine, Bloomberg BNA, and other publications and newspapers. His research findings have been used by the U.S. Federal Reserve Board, the Equal Employment Opportunity Commission (EEOC), the National Conference of State Legislatures, the National Association of Manufacturers, the National Federation of Independent Business, insurers, and international organizations.
Mr. Adler is the developer of the Employment-Labor Law Audit™ (ELLA®), the nation's leading HR auditing and employment practices liability risk assessment tool, and is a frequent lecturer and author on HR management and workplace issues.
As an adjunct professor at Villanova University, Mr. Adler teaches graduate courses on HR auditing. Mr. Adler is a certified instructor on employment practices and insurance issues for The CPCU Society, has conducted continuing professional education courses for the American Institute of Certified Public Accountants on "Assessing Employment and Personnel Policies," and has conducted continuing professional education courses for the Society for Human Resource Management (SHRM), the Institute of Internal Auditors, and the Institute of Management Consultants.
Mr. Adler has testified before the U.S. Congress and state legislatures, and has served as an expert witness in discrimination and negligent hiring lawsuits. Mr. Adler has served on two national taskforces developing HR professional standards in Human Capital Measurement and Performance Management.
Mr. Adler has also served as a subject matter expert on HR metrics to SHRM, formerly served on SHRM's Human Capital Measurement/HR Metrics Special Expertise Panel, has served as a consulting expert on workplace issues to SHRM's legislative staff, and represented SHRM in meetings with the EEOC.
Mr. Adler holds a bachelor's degree in finance from the University of Maryland and an M.B.A. degree from Southern Illinois University.
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