What is Human Risk Management (HRM)?

Human Risk Management (HRM) is a strategic approach used by companies to identify, evaluate, and manage risks related to human resources. Non-compliance with labour regulations, corporate culture issues, and employee performance are some of the various elements that can be part of this risk. The focus of HRM is to reduce risk through policies, training, technology, and a more safety-conscious culture. Humans are often considered the ‘weakest link’ in the security chain in contemporary business. This is due to the high rate of data breaches involving human error, whether intentional or unintentional. Therefore, HRM is an important component of a company's overall approach to risk control.

Why is Human Risk Management Important?

As security threats become increasingly complex and sophisticated, HRM is essential in today's digital age. Cyber attacks exploit human and technological weaknesses. For example, phishing emails can use employee trust to gain access to confidential company systems. Companies can face serious consequences if they do not have proper human risk management in place, such as: 

1. Sensitive Data Leaks: The main cause of data leaks is human error, which can stem from employee negligence or unethical behaviour.
2. Financial Losses: All incidents involving human error can affect a company's finances. For example, data breaches can result in significant fines from regulators and a loss of customer trust. 
3. Reputation at Risk: When personal information is leaked to the public or competitors, a company's reputation can be severely damaged. Companies that are known to have poor data security practices will find it difficult to maintain trust.
4. Disrupted Production: Human error in security matters can disrupt daily operations, reduce productivity, and increase unexpected costs.

Read: How SiberMate Builds a Strong Security Culture in Companies

Key Elements in Human Risk Management

To effectively manage risks related to human factors, there are several key elements that must be considered in HRM:

Employee Training and Education

Training is the foundation of HRM. Employees need to understand the potential risks they face and how their actions can affect the security of the company. Training on security policies, phishing, strong password usage, and information security protocols should be provided on a regular basis. This education helps prevent mistakes that are often unintentional but can have fatal consequences for the company.

Clear Policies and Procedures

Clear policies regarding the use of technological devices, access to sensitive data, and expected employee behaviour are essential for reducing risk. For example, a Bring Your Own Device (BYOD) policy must ensure that personal devices used to access company data have adequate security. In addition, incident response procedures must be in place to ensure that any detected threats can be dealt with quickly and efficiently.

Monitoring and Surveillance

HRM involves monitoring employee activities to detect suspicious behaviour or violations of security policies. Technologies such as intrusion detection systems (IDS) and user activity monitoring software can help identify potential threats originating from within the organisation. However, it is important to ensure that this surveillance does not infringe on employee privacy, but rather aims to protect the company from unwanted incidents.

Identity and Access Management

One important aspect of HRM is ensuring that access to sensitive data is granted only to those who need it. Identity and Access Management (IAM) allows companies to control who can access certain information, when, and where. This minimises the risk of data misuse.

Strong Security Culture

Building a strong security culture throughout the organisation is a long-term goal of HRM. This involves efforts to make every individual in the company aware of the importance of security, so that they feel responsible for maintaining data confidentiality and integrity. Employees with high security awareness will be more cautious in their actions, from opening emails to sharing files.

Examples of HRM Implementation in Companies

Continuous Training Program

Companies that are successful in HRM often hold continuous training programs. This training is designed to educate employees about the latest threats, such as increasingly sophisticated phishing attacks, and how to deal with them. In addition to regular training, companies also provide educational materials that can be accessed at any time. For companies that do not have a dedicated IT security team, solutions such as SiberMate can help. Designed for non-technical users, SiberMate enables companies to effectively manage employee cyber risks without the need for an internal IT team.

Cyber Attack Simulations

Cyber attack simulations, such as phishing attacks created by the internal security team, help test employee awareness. The results of these simulations can be used to identify weaknesses and strengthen training in those areas.

Strong Password Policy

Companies can implement policies that require employees to use complex passwords and change them regularly. Multi-factor authentication (MFA) can also be implemented to provide an additional layer of security.

Read: How SiberMate Helps Companies Manage Human Cyber Risk

Conclusion

Human Risk Management (HRM) is an important element in corporate risk management, especially in the digital age which is full of cyber threats. Human factors are often exploited by attackers, so it is important for companies to take proactive steps in training and managing their employees to be more aware of security risks. With the right HRM approach, companies can minimise risks, protect their critical assets, and ensure business continuity in an increasingly complex environment.