This document discusses talent risk management (TRM) which focuses on managing risks related to a business's talent. TRM is important because over 50% of business expenses relate to people and talent affects key business drivers. However, less than half of businesses have a talent management strategy. There are two main talent risks - existing talent and new talent. For existing talent, businesses may rely too heavily on key individuals and not have succession plans. For new talent, businesses need strategies to attract and retain talent in a competitive job market with growing skills mismatches. An effective TRM process would map out all critical roles, identify talent risks and gaps, and help businesses mitigate their talent risks.

1. Talent Risk
Management
May 3rd, 2018
Bob Glover

2. Introduction
Human Capital Solutions
Consultant
+1 (281) 352-6855
bobg8202@gmail.comBob Glover Bob has 20 years experience in human
capital solutions development, sales and
implementation primarily in the energy
and natural resources industry.
He has over 10 years of leadership
experience at the head of $50,000,000+
global staffing businesses with and
extensive global network.

3. Talent Risk Management
• Talent Risk Management (TRM) is simply Risk Management with a focus on the talent
within the business
• Most high performance organisations express concern regarding TRM
• Most have taken little action to address this risk
• Greater than 50% of business expense relates to people
• Talent affects the main business drivers

4. Talent Risk Management
• If businesses are going to mitigate business risk, then they must first focus on
TALENT risk
• This means focusing on and identifying EXISTING talent
• This means attracting NEW talent
• This is achieved by having an effective talent management strategy
• Less that half of all businesses have a talent management strategy

5. Talent Risk Management
• Businesses recognize that we live in a time of unpredictability and rapid change
• There are several factors that can challenge the traditional understanding of how
markets, business and management operate
• Political
• Environmental
• Social
• Technological
• Most well run, successful businesses have strategic plans that mitigate many risks
including financial, strategic, compliance or operations, but very few start with, or focus
on talent risk.

6. Talent Risk Management
Challenge 1 – Existing talent
• Many businesses have an effective “succession strategy” for executive personnel
• Many executives understand conceptually what their key talent does
• “Jim processes all the supplier invoices, he knows everything that is going on”
• “Kate is my compliance systems guru, there’s nothing she doesn’t know”
• Day to day management of key talent is not a problem, until it is a problem
• The Irving effect.*
• A key executive is the only/main contact with your suppliers. He takes suddenly ill.
• Replacing an existing outsourced engineering team on a major capital project to “save
costs”.
*From “This American Life”. The story can be found here: https://www.thisamericanlife.org/241/20-acts-in-60-minutes/act-fourteen-8

7. Talent Risk Management
Challenge 2 – New talent
• Businesses require a clear strategy for attracting and retaining new talent.
• Job openings are at historic levels (over 6 million)
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Axis Title
Job Openings vs Job Seekers
Job Openings Job Seekers
• Job seekers seeking full time work are at historic
levels (over 6 million)
• There is a growing mismatch in required skills
between the demand for talent and the active
candidate pool.

8. Talent Risk Management
• Less than half of businesses have a have a TRM process
• The majority of these processes tend to focus on high performers
• Few of these processes address risk associated with key contractor personnel
• An effective and comprehensive talent mapping system will look at all aspects of your
business process functions and identify key positions
• The talent mapping methodology should focus on critical roles and essential roles
• Skills gap analysis should then for each critical and essential role
• Review existing talent risks and gaps that exist within your team

9. Bob Glover
+1 (281) 352-6855
bobg8202@gmail.com
Questions?