Issue link: https://nebusinessmedia.uberflip.com/i/1522802
HARTFORDBUSINESS.COM | JUNE 24, 2024 5 What risks are keeping you up at night? www.marshmclennan.com In today's rapidly evolving business landscape, organizations face a multitude of risks that can impact their success and sustainability. While financial and operational risks often take center stage, one critical area that is often overlooked is people risk. People risk encompasses the challenges and uncertainties associated with managing and protecting your most valuable asset: your employees. From technological disruptions to talent acquisition and well-being, effectively managing people risk is crucial for mid- to large- sized organizations. In this article, we will explore the key aspects of people risk and highlight its impact on organizations and employees. 1 Integrating HR and Risk Functions To effectively mitigate people risk, it is essential to integrate HR and Risk functions within your organization. Collaboration between these two departments allows for a holistic approach to risk management, ensuring that people-related risks are identified, assessed, and addressed proactively. By aligning HR and Risk strategies, organizations can better prioritize and mitigate risks while fostering innovation and growth. Meg Galistinos Partner Connecticut Office Leader Mercer Meg.Galistinos@mercer.com Steve Toffolon Managing Director Resident Executive Hartford Marsh Stephen.A.Toffolon@marsh.com 2 Embracing Technological Change In today's digital age, organizations must embrace technological advancements to stay competitive. However, with technological progress comes the risk of cyber threats and data breaches. Managing these risks requires a comprehensive understanding of cybersecurity, effective AI management, and the impact of technology on work design. By investing in robust cybersecurity measures and equipping employees with the necessary skills, organizations can navigate the challenges of technological change while safeguarding their operations and data. 3 Cultivating Talent and Leadership Finding and retaining top talent is a perpetual challenge for organizations. To mitigate people risk in this area, it is crucial to focus on optimizing work design and creating a culture that supports long-term career growth and employee well-being. Nurturing a new generation of leaders is also vital for organizational success. By investing in leadership development programs and fostering a culture of continuous learning, organizations can build a strong talent pipeline and reduce the risk of leadership gaps. 4 Prioritizing Health, Well-being, and Safety Employee well-being is a critical aspect of people risk management. Organizations must prioritize both physical safety and psychological health. This includes addressing the impact of climate change on employee well-being, creating a psychologically safe work environment, and implementing comprehensive health and wellness programs. By promoting a culture of well-being and safety, organizations can enhance employee engagement, productivity, and overall organizational resilience. 5 Strengthening Governance, Compliance, and Financial Oversight Governance, compliance, and financial risks are integral components of people risk management. Organizations must reassess benefit programs to ensure long-term cost containment and address rising healthcare costs. Additionally, employee financial concerns should be acknowledged and addressed. Strengthening oversight controls and decision-making structures is crucial to mitigate financial risks and ensure compliance with regulatory requirements. Effectively managing people risk is a strategic imperative for mid- to large-sized organizations. By integrating HR and Risk functions, embracing technological change, cultivating talent and leadership, prioritizing employee well-being, and strengthening governance and compliance, organizations can navigate the complexities of people risk and safeguard their operations and employees. As leaders, it is essential to recognize the impact of people risk and take proactive measures to protect your organization's most valuable asset: your people. By doing so, you can create a resilient and thriving organization poised for long-term success in an ever-changing business landscape. Discover more insights from Marsh and Mercer in the People Risks 2024 report - https://www.mercer.com/en- us/insights/people-strategy/people- risks-and-business-resilience/people- risk-management/ For more information contact: Navigating People Risk: Safeguarding Your Organization and Empowering Your Employees SPONSORED CONTENT