Risky View

Employment law firm launches online tool for HR risk.

Risky View

Global

A new online HR Risk Indicator has been launched by GQ Employment Law. Though to be the first of its kind in the UK this online tool is designed to help organisations identify their attitudes to risk around employment issues, and plan accordingly. 

Companies often undertake detailed risk profiling in relation to ‘harder’ employee related areas such as tax, regulation and health and safety. However, the risk management of day-to-day HR, which can result in legal claims, internal and external reputational damage and criticism from regulators, is often less structured. This can result in inconsistent decision-making and an increased risk of unexpected financial, legal, regulatory and reputational damage, and unforeseen costs.

 

The GQ HR Risk Indicator is a short online survey that scores HR teams and other managers on their attitudes to risk on employment matters in four key areas:

  •  Legal/Financial Risk: the risk of incurring a legal penalty or having to pay a significant settlement
  • Regulatory risk: the risk of sanctions from a regulator
  • Cultural risk: the risk of damaging the business’s internal reputation amongst staff
  • Reputational risk: the risk of damaging external reputation.

Jon Gilligan, partner at GQ, comments: “There’s no right or wrong to being risk-averse or risk-comfortable as an organisation.  The problems arise when managers and members of the HR/Legal teams act inconsistently and make decisions that do not fit with the organisation’s risk appetite.  The problem can be even worse in organisations that don’t have an articulated attitude to risk, which results in decisions depending entirely on the risk appetites of individual decision-makers, who may take very differing views.

According to GQ, the benefits of articulating and agreeing a risk strategy include: better, more consistent internal decision making; better briefing of external advisors, resulting in more tailored and cost-effective advice; and benchmarking the risk profiles of key decision makers. 

More information about the GQ HR Risk Indicator can be found at http://www.gqemploymentlaw.com/resources-centre/risk-indicator



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