An operational risk is a potential risk that were not meant to happen such as human risks, natural disasters, or error of the company policy and procedures. All of these components would affect the day to day operations of the business, but it is important that the human resource manager has plans and procedures in place where employees can go to reference in order to find the answer to a question before taking action. Another important component that would help reduce organizational risk is proper training on the company’s policies and procedures as well as the strategic plan and overall goals of the company. By a company properly training their employees, it will generate revenue by encouraging employee to follow the company rules and understand what is expected of them in terms of the company’s own policy and procedures (Levoy, 2011). Therefore, if the human resource manager takes the time and really teaches the employees of the policy and procedures of the company, then it will hopefully reduce the risks formed from operational
An operational risk is a potential risk that were not meant to happen such as human risks, natural disasters, or error of the company policy and procedures. All of these components would affect the day to day operations of the business, but it is important that the human resource manager has plans and procedures in place where employees can go to reference in order to find the answer to a question before taking action. Another important component that would help reduce organizational risk is proper training on the company’s policies and procedures as well as the strategic plan and overall goals of the company. By a company properly training their employees, it will generate revenue by encouraging employee to follow the company rules and understand what is expected of them in terms of the company’s own policy and procedures (Levoy, 2011). Therefore, if the human resource manager takes the time and really teaches the employees of the policy and procedures of the company, then it will hopefully reduce the risks formed from operational