Risk Managers Fear People Related Exposures

UK Risk Management association, Airmic, has urged firms to adopt a more integrated approach to managing people risk.

Airmic has collaborated with Arthur D. Little, Willis Towers Watson and Zurich, to published Managing Risk – The Human Factor, a guide which raises real concerns around the ability of organisations to cope with what they describe as “an era of unprecedented volatility with regards to people risk and the most successful organisations will be those which take a new and more sophisticated approach”.

“Risk professionals have tended to think about people risk as risk to employees, whereas HR professionals tend to view it as the risk to the organisation from human factors,” said Julia Graham, Airmic’s Deputy CEO and technical director. (pic) “Both perspectives are equally important, so it was surprising to us how little interaction there is between the two functions. Risk and HR can really support each other and enhance the strategic value of their roles.

The guide is the first of its kind and Airmic said presents a new perspective for managing people-related risks. Rather than creating a new risk category, it applies a people-centred view to show how a broad range of existing risks, traditionally treated as separate and managed by different processes can be integrated into a coherent framework.

Crispin Marriott, Client Relationship Director, Willis Towers Watson, explained: “Organisations should think of their people as investors in their business, rather than assets. Employees choose to invest their human capital in the organisation, and they have choices about where to place that investment. Organisations need to attract that investment and make it grow. We are delighted to work with Airmic on this guide to demonstrate the important role risk and insurance professionals can play, in collaboration with colleagues in HR, to build an attractive organisation for its people.”

“This Airmic guide is a timely and valuable resource as the growing popularity of international employee benefits programmes is demanding more collaboration between risk and insurance professionals and their HR colleagues,” added Rob Brown, Director of Customer and Distribution Management, UK, at Zurich Insurance Company. “Risk management needs to be perceived as a value-added business partner to HR colleagues, assisting them to achieve their objectives by managing HR risk using similar tools and strategies that are employed in managing property and casualty risks.”