Risk Management
Definition
The process of identifying and mitigating potential HR, legal, and operational risks to protect your business, people, and workplace.
What is Risk Management?
Risk management includes preventing and addressing issues like wrongful termination, workplace injuries, harassment or discrimination claims, data breaches, and compliance violations.
Why is Risk Management Important for Employers?
- Minimizes financial and legal exposure
- Creates a safer, more compliant workplace
- Improves decision-making and insurance coverage options
FAQs
What types of HR risks are most common?
Some of the most frequent include wage and hour compliance, wrongful termination, harassment or discrimination claims, benefits mismanagement, and data security breaches.
How does HR contribute to risk mitigation?
Through developing clear policies, consistent enforcement, implementing compliant systems, and ongoing training for managers and employees.
Can partnering with a PEO reduce HR risk?
Yes. A PEO like ExtensisHR assumes shared liability and supports compliance in payroll, tax, benefits, and employment practices.
How ExtensisHR Can Help
Our risk management experts help you stay protected by:
- Identifying and assessing risks across HR functions
- Offering insurance coverage including EPLI and workers’ compensation
- Assisting with policy development and training
- Providing guidance and support during claims and audits