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Human Capital Risk Management

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Human capital risk refers to workforce factors and people practices that can affect business performance and is the risk associated with an organization's employees. It can be caused by external market forces as well as internal organizational culture issues. Left unmanaged, human capital risks like theft, violence, and aberrant employee behavior cost businesses billions annually in damages. CCA offers integrated human capital risk management solutions to help companies assess and address these risks through leadership training, risk mitigation programs, coaching, and incident management in order to improve workforce performance and engagement.

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Human Capital Risk Management How companies can minimize the risks of human capital and maximize its rewards. CCA Human Capital Risk Management o!ers integrated solutions that can assess, address, and manage an organization’s human capital risks and realize its potential for greater performance. “Lockheed Forces Out Incoming Chief After Uncovering A!air With Worker” “JPMorgan Fiasco Presents New Avenues to Investigate...” “Dimon’s Crown Tarnishes as Trading Losses Mount...” “With ‘Muppet’ Hunt, Will Goldman Sachs End E-mail Smack Talk?” “Home Depot Accused: U.S. Justice Department Investigates Company for Buy American Act Violations...” If you’ve ever wondered about the dramatic—and destructive—e!ects that human capital risk (HCR) can have on a company, just look at the headlines. Industry-leading companies are being shaken to their foundations by human capital risks that have been allowed to escalate to epic proportions. The connection between these risks and business performance is very real. What was once considered to be a rarity has now become an everyday threat to the health, reputations, and profits of companies everywhere. What does this mean to a company like yours? More than you might know. Welcome to CCA Human Capital Risk Management.
Human capital risk—what is it? According to a recent research report from The Conference Board, human capital risk is defined as the workforce factors and people practices that can a!ect business performance. Simply put, human capital risk (HCR) is the risk associated with your organization’s greatest asset—its people. It is the risk that your workforce’s ability to perform will be undermined by external and internal factors. External factors include market forces such as increasing regulation, emerging technologies, and competition, plus macro environmental forces like the economy, natural disasters, and the political climate. Internal factors include your organizational culture, leadership capability, and your people management practices. Human capital risk can be found in every aspect of your business that your employees touch. If people are involved, human capital risk exists. Much of the current discussion surrounding HCR focuses on the risks limited to talent gaps and succession planning. Enterprise risk management (ERM) initiatives are just beginning to incorporate this talent risk management (TRM) view of HCR. However, there is another layer of risk that is currently overlooked and under-served by traditional ERM and TRM—the possibility that your people will behave in ways that put the organization at risk. Why is managing human capital risk (HCR) important? Let’s face some realities. Hiring anyone has inherent risks. It comes with the territory. Employees, even good ones, can lose their way and become vulnerable to bad habits, or disruptive and even dangerous behavior under the wrong circumstances. External forces can change the playing field and create tension and dissension among the ranks. Organizational factors can encourage or facilitate the wrong kinds of behavior. When these risk factors are ignored, they can lead to counterproductive or destructive behavior that negatively impacts business performance and creates a toxic environment for employees. What are the costs of HCR? Research shows that aberrant workplace behavior costs businesses billions of dollars, damages company reputations and ability to recruit, and erodes employee health, engagement, morale, and productivity. The cost and prevalence of these behaviors are staggering: t Theft, embezzlement, & fraud cost $50–$200 billion/year t Workplace violence costs $34 billion/year t 18,000 assaults & 20 murders occur each week in US workplaces, a!ecting 2 million people/year t 95% of US businesses are a!ected
How can CCA help you manage risk? CCA’s approach to Human Capital Risk Management (HCRM) is an integrated process of assessing, identifying, and improving workplace factors and people management practices that influence workforce performance. CCA’s guidance and expertise can help you implement e!ective practices that result in more engaged, satisfied employees, better informed leaders, and a more positive and productive culture. You set strategic goals and expectations for the performance of your company. CCA can help you reach them by reducing the risk of counterproductive or damaging behavior. We o!er you and your company a breadth of integrated solutions that addresses the human capital risk threatening your success: t Risk Readiness & Leadership - Organization risk reduction surveys, assessment & feedback - Compliance policy & procedure development - Scenario-based risk mitigation planning & implementation - Leadership Team Readiness Assessment Center t Risk Mitigation Training - Employment interviewing & selection - Diversity & inclusion - All forms of harassment - Substance abuse & aberrant behavior - Anti-bullying & violence prevention - Performance management t High-stakes Executive & Leadership Coaching - Fast-track acceleration for new leaders - Experienced hire assimilation - Style alignment coaching - Critical incident-based coaching t Intervention & Incident Management - Counterproductive behavior correction - Conflict mediation & resolution - Crisis management “We have to manage human capital risk. In our business, human capital is our only asset, our only raw material, and our only product. ” S. Varadarajan, EVP, Chief Human Resources O"cer, Quatro Managing Human Capital Risk, The Conference Board
What makes CCA di!erent? We get it. We understand the linkage between organizational factors and human behaviors and can help you navigate successfully. For almost 30 years, CCA’s organizational and behavioral experts have partnered with clients of all sizes and industries to manage human capital risks across a wide spectrum. Our experience includes: strategic needs assessment, program design and execution, and real-time crisis management and risk mitigation. CCA’s unique hands-on expertise helps our clients anticipate and reduce the risks associated with their people, uncover opportunities for improvement, and implement the right solutions to take advantage of these opportunities. Results include empowering leadership, developing a more positive culture, and improving workforce performance across the entire organization. How do you get started? For more information on how CCA can help you better assess, address, mitigate, and manage human capital risk to drive better results, go to our website www.ccainc.com or call us at 212.686.6827 to learn more about our approach and solutions. CCA HCRM. Don’t let your greatest asset become your biggest liability.™ www.ccainc.com To receive your free position paper on Human Capital Risk Management from the experts at CCA, simply go to our website and download the PDF. 212.686.6827

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Human Capital Risk Management

  • 1. Human Capital Risk Management How companies can minimize the risks of human capital and maximize its rewards. CCA Human Capital Risk Management o!ers integrated solutions that can assess, address, and manage an organization’s human capital risks and realize its potential for greater performance. “Lockheed Forces Out Incoming Chief After Uncovering A!air With Worker” “JPMorgan Fiasco Presents New Avenues to Investigate...” “Dimon’s Crown Tarnishes as Trading Losses Mount...” “With ‘Muppet’ Hunt, Will Goldman Sachs End E-mail Smack Talk?” “Home Depot Accused: U.S. Justice Department Investigates Company for Buy American Act Violations...” If you’ve ever wondered about the dramatic—and destructive—e!ects that human capital risk (HCR) can have on a company, just look at the headlines. Industry-leading companies are being shaken to their foundations by human capital risks that have been allowed to escalate to epic proportions. The connection between these risks and business performance is very real. What was once considered to be a rarity has now become an everyday threat to the health, reputations, and profits of companies everywhere. What does this mean to a company like yours? More than you might know. Welcome to CCA Human Capital Risk Management.
  • 2. Human capital risk—what is it? According to a recent research report from The Conference Board, human capital risk is defined as the workforce factors and people practices that can a!ect business performance. Simply put, human capital risk (HCR) is the risk associated with your organization’s greatest asset—its people. It is the risk that your workforce’s ability to perform will be undermined by external and internal factors. External factors include market forces such as increasing regulation, emerging technologies, and competition, plus macro environmental forces like the economy, natural disasters, and the political climate. Internal factors include your organizational culture, leadership capability, and your people management practices. Human capital risk can be found in every aspect of your business that your employees touch. If people are involved, human capital risk exists. Much of the current discussion surrounding HCR focuses on the risks limited to talent gaps and succession planning. Enterprise risk management (ERM) initiatives are just beginning to incorporate this talent risk management (TRM) view of HCR. However, there is another layer of risk that is currently overlooked and under-served by traditional ERM and TRM—the possibility that your people will behave in ways that put the organization at risk. Why is managing human capital risk (HCR) important? Let’s face some realities. Hiring anyone has inherent risks. It comes with the territory. Employees, even good ones, can lose their way and become vulnerable to bad habits, or disruptive and even dangerous behavior under the wrong circumstances. External forces can change the playing field and create tension and dissension among the ranks. Organizational factors can encourage or facilitate the wrong kinds of behavior. When these risk factors are ignored, they can lead to counterproductive or destructive behavior that negatively impacts business performance and creates a toxic environment for employees. What are the costs of HCR? Research shows that aberrant workplace behavior costs businesses billions of dollars, damages company reputations and ability to recruit, and erodes employee health, engagement, morale, and productivity. The cost and prevalence of these behaviors are staggering: t Theft, embezzlement, & fraud cost $50–$200 billion/year t Workplace violence costs $34 billion/year t 18,000 assaults & 20 murders occur each week in US workplaces, a!ecting 2 million people/year t 95% of US businesses are a!ected
  • 3. How can CCA help you manage risk? CCA’s approach to Human Capital Risk Management (HCRM) is an integrated process of assessing, identifying, and improving workplace factors and people management practices that influence workforce performance. CCA’s guidance and expertise can help you implement e!ective practices that result in more engaged, satisfied employees, better informed leaders, and a more positive and productive culture. You set strategic goals and expectations for the performance of your company. CCA can help you reach them by reducing the risk of counterproductive or damaging behavior. We o!er you and your company a breadth of integrated solutions that addresses the human capital risk threatening your success: t Risk Readiness & Leadership - Organization risk reduction surveys, assessment & feedback - Compliance policy & procedure development - Scenario-based risk mitigation planning & implementation - Leadership Team Readiness Assessment Center t Risk Mitigation Training - Employment interviewing & selection - Diversity & inclusion - All forms of harassment - Substance abuse & aberrant behavior - Anti-bullying & violence prevention - Performance management t High-stakes Executive & Leadership Coaching - Fast-track acceleration for new leaders - Experienced hire assimilation - Style alignment coaching - Critical incident-based coaching t Intervention & Incident Management - Counterproductive behavior correction - Conflict mediation & resolution - Crisis management “We have to manage human capital risk. In our business, human capital is our only asset, our only raw material, and our only product. ” S. Varadarajan, EVP, Chief Human Resources O"cer, Quatro Managing Human Capital Risk, The Conference Board
  • 4. What makes CCA di!erent? We get it. We understand the linkage between organizational factors and human behaviors and can help you navigate successfully. For almost 30 years, CCA’s organizational and behavioral experts have partnered with clients of all sizes and industries to manage human capital risks across a wide spectrum. Our experience includes: strategic needs assessment, program design and execution, and real-time crisis management and risk mitigation. CCA’s unique hands-on expertise helps our clients anticipate and reduce the risks associated with their people, uncover opportunities for improvement, and implement the right solutions to take advantage of these opportunities. Results include empowering leadership, developing a more positive culture, and improving workforce performance across the entire organization. How do you get started? For more information on how CCA can help you better assess, address, mitigate, and manage human capital risk to drive better results, go to our website www.ccainc.com or call us at 212.686.6827 to learn more about our approach and solutions. CCA HCRM. Don’t let your greatest asset become your biggest liability.™ www.ccainc.com To receive your free position paper on Human Capital Risk Management from the experts at CCA, simply go to our website and download the PDF. 212.686.6827