Risk management refers to the process of acceptance, analysis and identification of indecision in investment decisions; it is a process that predicts potential risks.

There are various ways to establish risk, one of the main ones is standard deviation; which is a statistical measure of dispersion around a central tendency. Risk management is important in every organizations as it helps the organization to predict any issues and be able to tackle the 

Risk management in Human Resources identifies potential employee-related risks within the organization. If the organization ensures that employee problems are resolved within the organization, it will protect the organization from facing major risks. Avoiding employee - related risks will have a negative impact on the organization’s profitability, revenue and reputation. 

What role does the Human Resources Department play in risk management?

Human Resources plays a crucial role in risk management. The role of the Human Resources department is to take into consideration all the possible outcomes  in regards to employee risks, which could be related to:

• Management Styles
• Employee behavior 
• Salaries 

Where possible, the human resources department search for ways to reduce such risks, by implementing strategies to tackle employee related issues.