It is often said that the most valuable asset that a company has is its people. Whilst this is true enough for many businesses, not only are people the greatest asset, they can also be the greatest liability. Prevention is better than cure when it comes to managing people risk: the litany of corporate failures used as case studies in the book attest to this. A sub-category 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. This new book explains people risk, and enables the reader to consider it within the context of their own organization. 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. It offers practical tools, solutions and insights into how to implement an effective people risk management framework within your organisation.
With models and best practice advice to help you understand the root causes, it helps you address organizational culture and the influence it can have on behaviour. By exploring real-world examples of how ineffective people management can cause crises, the authors show you how to formulate and manage the roles and responsibilities of those directly involved in governance arrangements. A ground-breaking practical text, People Risk Management is an essential tool for any risk practitioner, manager or director.
About the Author
Dr Keith Blacker has worked in a variety of board and executive roles globally and is the former CFO of a large UK-based health insurance business. He has over 30 years' experience working within the financial services industry and has consulted to a range of national and international banks and insurance companies on risk management matters. He is a Fellow of the Institute of Chartered Accountants in England & Wales and a Fellow of the UK Institute of Internal Auditors.
Dr Patrick McConnell has been a senior manager in, and a consultant to, large international corporations, financial institutions and governments on multiple continents for over 35 years. His expertise is in risk management and information technology. He is a Fellow of BCS, the Chartered Institute for IT. He has taught in Australia and Ireland to advanced students and in-house executives.
Both authors hold doctorates in Business Administration and have published and spoken widely in industry and academic forums.
Industry Reviews
"An expertly written book, it takes you to the heart of the risk problem - people. The best systems, the most up to date software, the most meticulous risk mitigation plan, all can be circumvented by human ingenuity. Via case studies and analytical framing the authors review, analyse and most usefully prescribe how people risk can be minimized but never eliminated. People Risk is not a HR function but a holistic framework of thinking and this book exposes you to it." * Brian Lucey, Professor of Finance, Trinity College Dublin *
"I recommend this book to experienced risk managers because it tackles some very difficult areas from a broad knowledge base, builds on the work of other's research and introduces some new concepts. I would put a slight caveat to the less experienced risk practitioner because it is important to understand how people risk management should sit within a wider risk management framework. The book leaves the impression that people risk is the principal cause for all ills, however, root cause analysis consistently finds that there is usually more than one factor present for risks to materialise." * Jane Walde, Director of The Holistic Risk Practice (for RMProfessional) *
"People Risk Management by McConnell and Blacker is a book that has been sorely needed for some time. For too long risk practitioners, as a whole, have underplayed the role that people risk can have in an organisation. Given that the major events of the global financial crisis of 2007-2009 were a result of people, both in senior and junior positions, making poor decisions for a variety of reasons, it is time that people risk is given much more prominence. And it's not just a matter of risk culture, as McConnell and Blacker successfully argue. More attention needs to be paid to making a more robust decision making process, especially at senior levels. For the practitioner, this book offers more than an overview of the risk and some case studies; a framework for managing people risk, and proposals for increasing the quality of people risk management from the Boardroom to the individual worker make a valuable resource. This is a book that I wish I'd written." * Frank Ashe, Macquarie University *
"Among the many carefully reasoned observations in the wide field of risk management and its focus on People Risk, this book highlights the important roles of Human Resources which extend beyond its established domains of recruitment, selection, training, development and rewarding. The authors' detailed analyses persuasively render indispensable the wider remit of HR. The book, however, goes beyond HR. It prompts the governance functions into ensuring that people risks are included in every assignment they undertake, it argues that senior management are at the front line of promoting personal responsibility and managing people risk and it tells the board that people risks, not only need managing in the organisation, but they also need managing in the boardroom." * Bill Weinstein, Emeritus Professor of International Business, Henley Business School *
"It has long been appreciated that effective human resource management systems are an essential part of organisational success, however it is much less well understood that people can still bring down even the most successful organisations. Scratch beneath the surface and even apparently well run organisations can be found to have significant people risk exposures - often because they lack the necessary knowledge and expertise to manage this complex and diverse area of risk. Blacker and McConnell, two of the leading lights in people risk management, have delivered a must-read text for all senior managers and board members in organisations - combining practical insights with strong academic foundations. The book is also an important addition to the book shelves of students and academics with an interest in the human aspects of risk management." * Simon Ashby, Associate Professor at Plymouth University, and Chairman, Institute of Operational Risk *
