Question.4149 - Topic 3 DQ 2 Whose responsibility is it when managing company risk relative to people and products--Management, HR, the employees, third parties, board of directors, the investors? Provide an explanation and a specific example for your response.
Answer Below:
Several important positions within the company share a collective responsibility for managing corporate risk, especially those related to people and products. In order to ensure that risks pertaining to people and products are recognized and proactively managed, management is principally in charge of creating and carrying out the overall risk management plan. In order to reduce risks, they must also make high-level judgments on the distribution of resources (Dessler, 2020). By making sure that workers have the right training, are aware of safety and compliance regulations, and are treated fairly in line with the law, HR plays a critical role in managing risks associated to people. HR also makes ensuring that a proactive approach to risk management is supported by the company culture. Workers are in charge of following corporate rules and safety regulations. By voicing concerns and according to established procedures, they frequently serve as the first line of defense in risk mitigation. Third parties, such suppliers or contractors, are in charge of controlling their own risks, particularly when it comes to the production of goods or the provision of services, as these could affect the company's standing in the marketplace or its legal position. The board of directors holds management responsible for the execution of successful plans and supervises and keeps an eye on the organization's overall risk management framework. Last but not least, investors demand good risk management procedures to safeguard their capital and guarantee long-term profitability since they are indirectly impacted by business risk (Dessler, 2020). For instance, in the case of a product recall, management would implement the strategy, HR would manage internal and external communications, and employees would ensure adherence to safety procedures. References Dessler, G. (2020). Human resources management (16th ed.). Pearson. ISBN-13: 9780135172780More Articles From Management
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