Key HR Risks: Governance and Fraud Analysis PPT

This PPT slide, part of the 92-slide Unlock the Power of Operational Risk Management PowerPoint presentation, outlines significant risks associated with human resources, categorized into 3 main areas: safe environment, fraud through embezzlement, and unauthorized or rogue trading. Each risk is detailed with its drivers, implications for the business, and examples of past external events that illustrate the potential consequences.

For the "Safe environment" risk, the primary drivers include governance aspects such as ownership and accountability, oversight and validation, as well as human errors. The implications for the business are significant, including the replacement costs for lost or damaged assets and potential regulatory fines. Past events from notable companies like HSBC and Grupo Santander highlight the real-world impact of these risks.

The section on "Fraud – Embezzlement" identifies similar governance drivers and emphasizes the need for robust processes and accountability. The implications here also involve financial write-downs and regulatory fines. The slide cites specific past incidents involving banks, underscoring the urgency of addressing these vulnerabilities.

Lastly, the "Fraud – Unauthorized/rogue/insider trading" section mirrors the previous sections in its structure, focusing on governance and process design. The implications again include write-downs and regulatory fines, with past events from various financial institutions providing context for the risks involved.

Overall, the slide serves as a critical reminder of the multifaceted risks in HR, urging organizations to prioritize governance and process integrity to mitigate potential financial and reputational damage. It effectively communicates the importance of proactive risk management in maintaining operational stability.

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Risk Management Human Resources Process Design Operational Risk Governance