8.1. Risk Identification

An argument could be made, and often is, that risk is inherent in any activity. The magnitude of the risk often determines whether an activity is pursued, and this of course is true for human resource activities. HR risks can be classified into one of the following five areas:

Legal compliance

Employers are at risk for potential lawsuits arising from employment practices that are out of compliance with laws and regulations designed to protect employees from unlawful activities such as discrimination, wrongful termination, sexual harassment, and others. As described in earlier chapters, failure to comply with legal requirements has the potential to cost employers millions of dollars in legal expenses, judgments, penalties, ...

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