The global advisory service found less than half (42%) of employer validate their HR risk profile and just over half (56%) identify and document the likelihood and impact of HR risks to their organisation.
Risks in HR stem from managing people and include insufficient training, issues in pay and performance and weaknesses in the relationships with recruitment agencies.
Among human resources professionals questioned 43% say the area of strategic HR risk will gain the most exposure over the next three years, but only 29% say their corporate risk budget will increase and 2% believe it will decrease.
Frances Marbury, executive director of HR Risk Advisory Services, said: "There is a definite awareness in the marketplace about HR risks, as HR, finance and risk executives all ranked these items among the most important issues facing their organisation. But despite this recognition executives are not managing these areas with the same intensity as they do more traditional challenges. Unfortunately, this could leave both the executive, as well as the organisation, vulnerable."
Ignoring the risks in HR makes organisations vulnerable
HR risk is not being monitored with the same scrutiny as other risk issues, leaving employers open to severe consequences to their reputation and financial health, according to Ernst & Young.
