Survey: Personnel risks are biggest threat to firms
Employees' skills shortages, succession issues and the loss of key personnel are seen as the most significant threat companies face, according to a survey by the Economist Intelligence Unit.
Yet few firms have effective practices in place to manage the human capital risks.
International risk managers surveyed by the Economist Intelligence Unit cite human capital risks as being the most significant threat they face to their global business operations.
The findings show that human capital risks are more significant than threats from reputational risk, information technology risk, political risk and regulatory risk.
This is a change from a year ago, when reputational risk was perceived as being the biggest threat that respondents faced.
Despite acknowledging the importance of the skills issue, just 32% of respondents say that they manage human capital risks effectively.
The only areas where they feel less confident are risks associated with terrorism and climate change.
“Our survey shows that human capital risks have emerged to be the most threatening that companies now face,” says Rob Mitchell, editor of the report.
“Yet few respondents think that they are managing these risks effectively. It appears there is still much work to be done in determining a framework and establishing metrics for risks associated with issues such as skills shortages, succession issues and loss of key personnel.”
