People risk management

"The collapse of major corporations during the global financial crisis, major accidents, and strategic mistakes resulting from mismanagement, have highlighted the crucial role that bad decision making has in creating disasters. People are at the core of corporate success and failure. Researchers in behavioral psychology have discovered that individual persons and groups are not good at making decisions as they fall prey to human biases, giving rise to the term "people risk." Risk management experts Keith Blacker and Patrick McConnell provide a business-friendly introduction to behavioral psychology, explaining how biases, illusions, and conflicts of interest can lead board members, managers, and employees to make potentially disastrous decisions. Using case studies and examples, the authors demonstrate how crucial people risk management is and how ineffective risk management can create crises. They also offer practical tips and tools for changing the culture and structure of organizations to better align people risks with corporate values and provide advice on managing the roles and responsibilities of those directly involved in overseeing risk and people management. "-- "A subcategory of operational risk management, people risk can be defined as the risk that people do not follow the organization's procedures, practices and/or rules, thus deviating from expected behaviour in a way that could damage the business's performance, offering and reputation. From fraud to bad business decisions, illegal activity to lax corporate governance, people risk presents a growing challenge to assess and mitigate in today's complex, dispersed business organizations. Framed by recent corporate events and challenges and including case studies from the LIBOR rate scandal, the BP oil spill, Lehman Brothers, AIG and HBOS, People Risk Management provides unique depth to a topic that has garnered increased interest in recent years: managing risks associated with the behaviour of both employees and those outside a company. It offers practical tools, real-world examples, solutions and insights into how to implement an effective people risk management framework within an organization"--