Enterprise Risk Management - Week 15 Assignment

When it comes to selecting or hiring for a new staff member, there are many things that go through the employers mind. Is this the right person for the job? Will they give me their best effort? Will they fit in well with ...

When it comes to selecting or hiring for a new staff member, there are many things that go through the employers mind. Is this the right person for the job? Will they give me their best effort? Will they fit in well with our team? How do they handle adversity? During the interview process, the majority of these questions and similar questions will be answered. However, there are some uncertainties when it comes to these situations. That is why employers prepare for these situations by assuming risk. With no risk mitigation plan, a bad hire can lead to a loss in productivity, lower staff morale, and the monetary costs of finding a replacement(Half). Some risks that employers assume when making a new hire are that the hiree could end up hurting the business in a multitude of ways. A manager who is untrained on interviews and an inconsistent hiring process could lead to finding the wrong employee for the job(Mathy). If no risk is assumed when bringing on a new employee, then there is no way to mitigate a problem if something comes up. One way a company can manage risk is by getting coverage to protect against employment practices risks. It might be important for a business to consider getting employment practices liability insurance to protect themselves against this very thing. When making a new hire or selection for a job, it is always important to complete a full background check over that person. There are very many reasons why employers should complete a background check before making a hire: provide a safe workplace for employees and customers, to hire the most qualified people for the job, to encourage honesty in the application and interview process, and to eliminate any uncertainty in the hiring process(Why are background checks important). Background checks are a critical piece of the hiring process in today's world. According to OSHA, workplace violence “is any act or threat of physical violence, harassment, intimidation, or other threatening disruptive behavior that occurs at the work site. It ranges from threats and verbal abuse to physical assaults and even homicide. It can affect and involve employees, clients, customers and visitors.” Workplace violence is not only harmful to the people who are a part of the violence, but it can also leave a negative perception of that business. This is why businesses need to have a zero tolerance policy when it comes to workplace violence no matter who is involved. If any violence occurs within the workplace, that business needs to make sure to handle that situation to near perfection. If they do not then there is a good chance that customers will not come back and they will lose business. Employees are the cause of many risks to their employers in a business. It is critical that the employers identify these risk issues so that they can find a solution before they occur. It is a law by OSHA that employers must have a safe environment to work in for their employees. A few examples of employers responsibilities include no recognized hazards, examinations of the workplace, proper tools and equipment, warning employees of potential dangers, and proper training for the employees(OSHA). It is an important aspect of the employers duty to be aware and responsible for all the risks employees face while they are at work. There is always risk for the employer when it comes to hiring a new staff, especially when it comes to loss and shrinkage of their inventory. The loss and shrinkage of a product occurs when there are fewer items in stock than the amount of items in inventory. This is a result of products being lost, damaged, or stolen before being sold. No business is perfect when it comes to the aspect of shrinkage, especially when a new staff is in place ...................................................................Continued.............................................