MITIGATING PEOPLE RISKS
Creating the right risk culture will do much to reduce people risks. After that, the fundamental way of mitigating those risks is by effective controls. Controls protect the firm from risk, but also help to protect people from themselves, especially when times are difficult.
But there are other elements of people risk mitigation beyond internal process controls. To see them in their context, Table 14.1 details some typical people risk events, their probable causes and the methods by which those risks can be reduced:
Risk event |
Cause |
Mitigant |
---|---|---|
Employee criminal activity; fraud; unauthorised activity. |
Lack of integrity, dishonesty |
Healthy culture Employee selection ... |
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