Enterprise Risk Management - Week 15 Assignment

When it comes to selecting or hiring for a new staff member, there are many things that go through the employers mind. Is this the right person for the job? Will they give me their best effort? Will they fit in well with our team? How do they handle adversity? During the interview process, the majority of these questions and similar questions will be answered. However, there are some uncertainties when it comes to these situations. That is why employers prepare for these situations by assuming risk. With no risk mitigation plan, a bad hire can lead to a loss in productivity, lower staff morale, and the monetary costs of finding a replacement(Half). Some risks that employers assume when making a new hire are that the hiree could end up hurting the business in a multitude of ways. A manager who is untrained on interviews and an inconsistent hiring process could lead to finding the wrong employee for the job(Mathy). If no risk is assumed when bringing on a new employee, then there is no way to mitigate a problem if something comes up. One way a company can manage risk is by getting coverage to protect against employment practices risks. It might be important for a business to consider getting employment practices liability insurance to protect themselves against this very thing. When making a new hire or selection for a job, it is always important to complete a full background check over that person. There are very many reasons why employers should complete a background check before making a hire: provide a safe workplace for employees and customers, to hire the most qualified people for the job, to encourage honesty in the application .........................Continued........................