RISK AND REWARD
Advice on reward-related risk management
The risks that organisations face when managing their reward practices are intensifying, but practitioners are really struggling to meet these challenges, write Charles Cotton and Jonathan Chapman in the latest edition of People Management magazine.
According to recent research undertaken by the Chartered Institute of Personnel and Development and Cranfield School of Management, the greatest reward risks are poor communication and inability to adapt reward policies and practices to the changing business environment.
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Cotton, who is the CIPD’s adviser on reward, and Chapman, a teaching fellow at Cranfield School of Management, advise HR professionals to adopt established risk management techniques such a risk logs, stress testing and impact and probability analysis. As the authors explain: “Good risk management should not be a barrier to risk-taking activity. Taking risks is at the heart of all organisational activity and crucial if organisations are to innovate, develop and create value. Failure to take up opportunities that arise is a huge risk in itself. Risk management is as much about this as it is about avoiding problems.”
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Title: “Worth the risk”, by Charles Cotton and Jonathan Chapman, People Management magazine, 11 February 2010.
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You can read the article online at www.peoplemanagement.co.uk/pm/articles/2010/02/worth-the-risk.htm.