The National Standard on HR Risk Management by Marius Meyer, CEO: SABPP.

1. THE NATIONAL STANDARD ON HR RISK
MANAGEMENT
Marius Meyer, CEO: SABPP
14 October 2015
@mariusSABPP
@SABPP1

2. HR Risk Management: It is all about
people factors

3. Top facts about HR
• Human Capital is the biggest concern for
CEOs (PwC).
• Only 18% of CEOs feel confident that they
have the right people in place to execute
strategy (CEB).
• Human Capital is the biggest risk in
business (HCI Africa).
• Skills crisis is the top obstacle to economic
growth.
• Strikes cost SA R 200 million+ per day.

4. More facts about HR
• SA losing R12 billion a year due to absenteeism.
• Only 19% auditors feel they use HR optimally (CG
Index – Institute of Internal Auditors)
• Only 5% employees understand business strategy.
• World-wide 13% of employees actively engaged.
• Companies with engaged employees outperform
others by 202% (Dale Carnegie).
• Companies with good HR Practices outperform
others by treating HR as critical business function,
these companies are 105% more profitable.
• Average ROI on wellness programmes: 300%.

5. Risk / Readiness Profile

6. 468 HR Leaders developing
HR Standards for South Africa

7. HR Standards Files
13 standards (2013) 19 standards (2014)

8. BUSINESS STRATEGY – HR BUSINESS ALIGNMENT
Strategic
HRM
Talent
Management
HR Risk
Management
HR ARCHITECTURE
I
HR VALUE &
DELIVERY PLATFORM
Work-
force
planning
Learning
&
Deve-
lopment
Perfor-
mance
Mana-
gement
Reward
Well-
ness
ERM OD
HR Service
Delivery
HR Technology
(HRIS)
Prepare
Imple-
ment
Review ImproveHR MEASUREMENT
HR Audit: Standards & Metrics
HRCOMPETENCIES
SABPP HRM SYSTEM STANDARDS MODEL

9. HR RISK MANAGEMENT
STANDARD
DEFINITION
HR Risk Management is a systematic
approach of identifying and addressing people
risks (uncertainties and opportunities) that can
either have a positive or negative effect on the
realisation of the objectives of an
organisation.

10. Do you manage HR risk?

11. HR Risk Management
OBJECTIVES
3.2.1 To increase the probability and impact of positive events and decrease the
probability and impact of negative events caused by people factors on the
achievement of organisational objectives.
3.2.2 To align HR and people management practices within the governance, risk
and compliance framework and integrated reporting model of the organisation.
3.2.3 To ensure appropriate risk assessment practices and procedures relating to
people factors are embedded within the organisation.
3.2.4 To ensure appropriate risk controls are designed and applied to HR activities
and interventions.
3.2.5 To contribute in creating and sustaining a risk culture in an organisation
which also encourages innovation and creativity.
SABPP (2013)

12. HR Risk?

13. HR RISK MANAGEMENT PROCESS
Assessment of
risk tolerance
for each risk
Identify and
evaluate impact of
HR risks
HR practices,
programmes, metrics to
manage risks
HR Risk Map
HR Risk
Register
Organisation’s risk
management
structures and
processes
HR Risk
Register
HR Risk
Management
Plan
HR Risk Map
MONITOR &
EVALUATE

14. BUSINESS STRATEGY – HR BUSINESS ALIGNMENT
Strategic
HRM
4.5
Talent
Management
4.1
HR Risk
Management
4.1
FUNCTIONAL & CROSS FUNCTIONAL HR VALUE CHAIN
HR VALUE &
DELIVERY PLATFORM
Work-
force
Planning
4.4
Learning
5.8
Perfor-
mance
5.0
Reward
4.3
Well-
ness 5.2
ERM
5.7
OD
4.7
HR Service
Delivery
5.9
HR Technology
(HRIS) 5.1
Prepare
Imple-
ment
Review ImproveMEASURING HR SUCCESS 4.2
HR Audit: Standards & Metrics
HRCOMPETENCIES
SELF RATINGS – OVERALL AVERAGE

15. BUSINESS STRATEGY – HR BUSINESS ALIGNMENT
Strategic
HRM
6.1
Talent
Management
4.3
HR Risk
Management
6.8
FUNCTIONAL & CROSS FUNCTIONAL HR VALUE CHAIN
HR VALUE &
DELIVERY PLATFORM
Work-
force
Planning
6.3
Learning
6.2
Perfor-
mance
6.1
Reward
6.9
Well-
ness
5.9
ERM
6.5
OD
5.6
HR Service
Delivery
5.4
HR Technology
(HRIS) 5.1
Prepare
Imple-
ment
Review ImproveMEASURING HR SUCCESS 4.3
HR Audit: Standards & Metrics
HRCOMPETENCIES
AUDITED RATINGS – OVERALL AVERAGE

16. H R R I S K S – 8 African countries
• Safety - accidents
• Skills shortages/gaps
• Incompetence
• Employee
disengagement
• Strikes & poor
employment
relationships
• Fraud/corruption
• Stress
• Staff turnover
• Low staff satisfaction –
impact on customer
satisfaction
• Cyber security
• Conflict/disputes
• Diversity problems
• Sexual harassment
• Expatriate issues
• Non-compliance

17.  181 babies died in state hospitals last year.
 Human errors, faulty equipment
& cover-up by senior medical staff were key
factors.
 Infection-control nurse retired, and her post not
filled.
 Critical shortage of nurses & clinical engineers
who are responsible for maintaining ventilators.
 Senior doctors presented inaccurate stats to their
bosses to cover up poor management practices.
 Doctors failed to alert DoH to the crisis, even
though a few nurses had raised the alarm to
management.
Public sector case study

18. What the Auditors are looking for?
Positive trend in
results?
Sustainable?
Targets met?
External benchmarks?
Approach vs results?
Quality of
results
Across whole
organisation?
Up and down the
organisation?
Extent of
application
Sound?
Systematic?
Integrated?
Reviewed & updated?
Quality
approach

19. RATING SCALE TO ASSESS HR
PROBLEMATIC MEDIOCRE EXCELLENT
High Risk Medium Risk Low/no Risk
HR practice is non-existent,
has a low uptake or is applied
poorly. Little, no or poor
results are evident. Requires
urgent attention to move to
medium risk over short or
medium term.
Some pockets of excellence,
but they are isolated, and
applied inconsistently in
certain parts of company.
Some occasional positive
results comparable to typical
average HR standards. Should
be addressed before it
becomes problematic.
HR leading practice is well
infused, aligned and integra-
ted across the company and
applied consistently with clear
results. Comparable to world-
class standards. Should be
maintained, reinforced or used
as a model for other
companies.

21. SUSTAINABLE PERFORMANCE
“Whether a company sustains exceptional performance
depends first and foremost on whether it continues to
have the right people in power.”

22. Conclusion
The National HR Standards have changed the
face of people management in South Africa.
The HR Standards usher in a new period of
institutionalising people management as a
best practice for sound HR professionalism
and business impact in organisations.
HR Risk Management is one of the 3 strategic
HR Standards. Best wishes identifying and
managing your HR risks.

23. We set HR standards!
professional@sabpp.co.za or registrations@sabpp.co.za
(Professional Registration)
executiveoffice@sabpp.co.za (CEO office)
marius@sabpp.co.za (CEO & Strategy inputs)
xolani@sabpp.co.za (COO)
hraudit@sabpp.co.za (HR Audits)
penny@sabpp.co.za (Research)
naren@sabpp.co.za (Learning & Quality)
events@sabpp.co.za (Events & HR Standards files)
Website: www.sabpp.co.za Blog: hrtoday.me
Office: 8 Sherborne Str, Parktown, South Africa
Tel: +27 11 045-5400 Fax: 011 482-4830