What is the key role that Training and Development has in managing People Risk?

  • Subscribe to updates

  • Privacy
  • This field is for validation purposes and should be left unchanged.

In this blog we talk about the importance of Training and Staff Development in managing people risk. Operational Risk Software can be key to supporting this discipline.   

Taken from: Mastering Risk Management 

Training and Development 

Just as business objectives (and risks) lie at the heart of the appraisal process, so business objectives help to frame a firm’s learning and development needs and those of individuals. Objectives also form the basis of assessing the success of training and development. There is little point embarking on a training or development programme without assessing whether it succeeded in what it set out to do. 

The firm will need to implement and maintain a series of risk indicators to help spot possible new training needs within the firm and their impact. These might include productivity levels, error analysis or staff turnover. 

Firms need to invest in training for both new and existing members of staff so that they can take a more integrated view of their risks. Job rotation should be encouraged within the firm so that job cover levels are improved and can operate, if, for example, a particular member of staff is absent. 

Training and development may involve courses, but can also mean changes to responsibility or environment. You never know when somebody will be missing. At a higher level, leadership should be developed within the firm. How often does the board, or indeed the senior executives, take a day out to do training? 

Leadership involves people skills, such as: 

  • coaching
  • communication
  • conflict management
  • counselling
  • motivation
  • performance evaluation
  • time management. 

They need to be trained, apart from knowing legislation such as diversity and employment law. 

Firms which don’t nurture their talent will see it leave and go to the competition. If personal and professional development is switched off, firms will find themselves with an even more desperate shortage of talent when it is needed – whether for a downturn or an upturn. 

But appraisals are not the only guide to personal development. The firm’s objectives over the medium term will point to the skills required, so that a skills audit should be regularly conducted to make sure the firm has a reservoir of the right kind of both technical and leadership talent to fulfil its strategy and develop its human capital accordingly. 

In our next blog we will be talking about the impact of Pay and Reward on managing people risk. 

Mastering Risk Management by Tony Blunden and John Thirlwell is published by FT International. Order your copy here: https://www.pearson.com/en-gb/subject-catalog/p/mastering-risk-management/P200000003761/9781292331317    

For more information about how Operational Risk software can help your organisation, contact us today on sales@risklogix-solutions.com  

Related Posts

How to Foster a Culture of Risk Awareness in Your Bank: The Role of GRC Technology
The financial industry underpins the entire economic system by fostering trust and stability. Banks, a cornerstone of this ecosystem, play a critical role for individuals and businesses alike. For individuals, they act as trusted custodians, safeguarding hard-earned assets in the form of checking and savings accounts.  On a broader scale, banks facilitate commerce by offering …

How to Foster a Culture of Risk Awareness in Your Bank: The Role of GRC Technology Read More »

When managing People Risk, what are the key indicators?
In this, our final blog on the topic, we discuss the Key People Indicators for risk management. Operational Risk Software can be key to supporting this discipline.    Taken from: Mastering Risk Management  If people are, as a category, a firm’s biggest potential risk, it’s fair to ask what indicators are available to monitor that risk, …

When managing People Risk, what are the key indicators? Read More »

How do you mitigate People Risk?
In this blog we talk about key strategies for mitigating people risk and present a table to demonstrate context. Operational Risk Software can be key to supporting this discipline.    Taken from: Mastering Risk Management  Creating the right risk culture will do much to reduce people risks. After that, the fundamental way of mitigating those risks …

How do you mitigate People Risk? Read More »