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 to include information on the forthcoming: Paid Family and Medical Leave Handbook Statement: Washington, Paid Leave Handbook Statement: Nevada, Pregnancy Accommodation Handbook Statement: Oregon, and Scheduling for Retail, Hospitality and Food Services Handbook Statement: Philadelphia, Pennsylvania.
Updated guidance to reflect amendment relating to a person's right to carry a firearm onto company property, effective November 1, 2019.
Updated to reflect amendments clarifying an employer's right to prohibit guns in the workplace, effective November 1, 2019.
Updated to reflect the Stop Hacks and Improve Electronic Data Security Act, amending the state data breach notification law, effective October 23, 2019.
Updated to reflect amendments to the state Personal Information Protection Act, effective October 1, 2019.
Updated to reflect forthcoming final overtime rule updating and revising the Fair Labor Standards Act (FLSA) overtime exemption requirements.
HR and legal considerations when creating and implementing risk management plans. Advice on eliminating bad risks and optimizing good risks.