Companies encounter a variety of human resources risks that can significantly impact their operations and long-term success. One of the most prominent risks is talent acquisition and retention, as the inability to attract or keep skilled employees can lead to productivity losses, increased recruitment costs and knowledge gaps. Compliance with constantly evolving labor laws and regulations poses a challenge, as non-compliance can result in legal penalties and reputational damage. Other risks include employee misconduct, such as harassment or discrimination, which can create a toxic workplace environment, lower morale, and expose the company to lawsuits. Inadequate succession planning can leave organizations vulnerable if key personnel leave unexpectedly, while poor workforce planning may result in skills shortages or redundancies.

To address these risks, companies should implement comprehensive HR strategies that focus on proactive talent management and robust compliance frameworks. This involves developing competitive compensation and benefits packages, fostering a positive organizational culture, and investing in ongoing training and development to enhance employee engagement and loyalty. Regular audits and updates of HR policies ensure alignment with current laws and best practices, reducing the likelihood of compliance breaches. 

1. Close-the-Books, Finance, IT and Human Resources Review Report

Discover best practices and recommendations to optimize finance, IT and HR processes for improved efficiency and control.

2. Develop and Manage Human Resources RCM

Manage risks common to human resources development and management in a risk control matrix (RCM) format.

3. Human Resources Capability Maturity Model (CMM)

Move the maturity of your organization’s human resources management process toward the optimized state with this capability maturity model

4. Human Resources Internal Controls Questionnaire

Improve your organization’s human resources function and its associated internal controls structure.

5. Human Resources Management and Employee Setup Process Flow

Address the risk of setting up fictitious employees in your payroll system and the task of properly processing termination requests.

6. Human Resources Risk Key Performance Indicators (KPIs)

Apply these leading practices to manage the online recruiting risks of your organization’s human resources function.

7. Human Resources Risk Management Guide

Use these best-practice elements and processes to identify and manage your human resources risk.

8. Human Resources Review Audit Work Program

Assess and refine your HR policies, procedures and internal controls to support both regulatory compliance and strategic alignment.

9. International Human Resources Audit Questionnaire

Stay compliant with international auditing standards for human resources policies and operations with our sample questionnaire.

10. Payroll and Human Resources Review Audit Report

Enhance the payroll and human resources function within your organization’s key executive retention program.

View all Human Resources Tools and Publications.