After the Chancellors announcement at the Labour party conferences about bringing in legislation to minimise risk and stop reckless culture many would assume that the future of our banks is secure. Sadly this is far from the truth, the headlong rush to bring in legislation from all sides assumes that legislation alone can minimise risk, it cant, as history clearly demonstrates. In any organisation, financial or not, all the regulation, compliance and legislation in the world can’t minimise risk as its people, not systems, who create risk so it has to be people that minimise it.
Here HR can and must play a key role in minimising risk through culture. This not only covers legal risk but also reputational risk that legislation and systems can never cover. This is HRs great opportunity to become key players in the management of risk in organisations and demonstrate its real business credentials. HR already influences many factors that can minimise risk behaviour so delivering an HR driven risk management culture is something that can be done relatively simply as Chris Roebuck explains