Overview: Not all risks are bad. For example, buying another company has many inherent risks, but the reward might be worth the risk. When it comes to risk analysis and risk management, an employer should be able to recognize all risks, both good and bad. Then, the employer must evaluate how likely these risks will come to fruition and how they may affect the workplace. The employer must also decide what can and should be done to mitigate or cultivate those risks.
According to FEMA, almost 40 percent of workplaces that close because of an emergency never open again, with 25 percent of the rest closing within a year. To counteract this, employers should have a business continuity and risk management plan to ensure that important business functions, such as payroll, are able to run even when the building itself is closed. To keep employees safe, employers should also have specific emergency plans for any workplace disaster, whether manmade or natural, that has a realistic possibility of happening in the workplace.
There are numerous types of insurance to benefit businesses, from ransom insurance to general liability insurance. An employer that is practicing good business risk management will make sure that it is insured in all the areas that might realistically apply.
Trends: Among the many concerns that employers should take into account when performing a risk assessment is the likelihood of violence in the workplace. An employer may want to provide its employees with training in the event of an active shooter.
Author: Melissa Gonzalez Boyce, JD, Legal Editor
Updated policy and guidance to reflect the Defend Trade Secrets Act, effective May 11, 2016. See Defend Trade Secrets Act.
As a result of the recently enacted Defend Trade Secrets Act, the Confidential Company Information handbook statement and the Reporting and Anti-Retaliation Policy handbook statement have been updated.
A divided 9th Circuit Court of Appeals has upheld the criminal conviction of a man who accessed his former employer's database to gain proprietary information by using a former co-worker's username and password.
Updated to reflect discipline concerns under the Workplace Privacy Act, effective July 20, 2016.
Updated to reflect forthcoming amendments to regulations concerning an employer's ability to discourage drug use and employee eligibility for benefits based on marijuana usage.
Updated to reflect an amendment to the data breach notification law, effective July 20, 2016.
Updated to reflect a forthcoming law increasing OSH Act civil penalties.
Updated to reflect forthcoming ban on criminal history questions on an initial job application for all employers.
Updated to reflect a new regulation that clarifies the deadline for requesting a hearing to contest workers' compensation benefits, effective July 1, 2016.
HR and legal considerations when creating and implementing risk management plans. Advice on eliminating bad risks and optimizing good risks.