People risk management : a practical approach to managing the human factors that could harm your business Keith Blacker, Patrick McConnell

"The collapse of major corporations during the global financial crisis, major accidents, and strategic mistakes resulting from mismanagement, have highlighted the crucial role that bad decision making has in creating disasters. People are at the core of corporate success and failure. Researchers in behavioral psychology have discovered that individual persons and groups are not good at making decisions as they fall prey to human biases, giving rise to the term "people risk." Risk management experts Keith Blacker and Patrick McConnell provide a business-friendly introduction to behavioral psychology, explaining how biases, illusions, and conflicts of interest can lead board members, managers, and employees to make potentially disastrous decisions. Using case studies and examples, the authors demonstrate how crucial people risk management is and how ineffective risk management can create crises. They also offer practical tips and tools for changing the culture and structure of organizations to better align people risks with corporate values and provide advice on managing the roles and responsibilities of those directly involved in overseeing risk and people management. "-- Provided by publisher.

"A subcategory of operational risk management, people risk can be defined as the risk that people do not follow the organization's procedures, practices and/or rules, thus deviating from expected behaviour in a way that could damage the business's performance, offering and reputation. From fraud to bad business decisions, illegal activity to lax corporate governance, people risk presents a growing challenge to assess and mitigate in today's complex, dispersed business organizations. Framed by recent corporate events and challenges and including case studies from the LIBOR rate scandal, the BP oil spill, Lehman Brothers, AIG and HBOS, People Risk Management provides unique depth to a topic that has garnered increased interest in recent years: managing risks associated with the behaviour of both employees and those outside a company. It offers practical tools, real-world examples, solutions and insights into how to implement an effective people risk management framework within an organization"-- Provided by publisher.

Machine generated contents note: 01 People Risk in context -- 1.1 A quiet revolution in decision-making -- 1.2 The Global Financial Crisis -- 1.3 Failure to challenge -- 1.4 What is People Risk? -- 1.5 Structure of the book -- 1.6 Audience -- Notes02 Definition and models of People Risk -- 2.1 Introduction - what is People Risk? -- 2.2 An example of People Risk Management -- 2.3 Definition of People Risk -- 2.4 Models of People Risk -- 2.5 The People Risk Triangle -- Notes03 The human dimension of People Risk -- 3.1 Decision-making -- 3.2 Cognitive biases -- 3.3 Heuristics -- 3.4 Conflicts of interest -- 3.5 Systems of human decision-making -- 3.6 A hypothetical example -- Notes04 Case studies in People Risk -- 4.1 Summary of cases -- 4.2 The 4Is Model -- 4.3 Incidents -- 4.4 Individuals -- 4.5 Institutions -- 4.6 Industry -- 4.7 Lessons to be learned from the cases studied -- Notes05 People Risk Management Framework -- 5.1 Risk Management -- 5.2 People and other risks -- 5.3 People Risks in the Risk Management Framework -- 5.4 Internal and External People Risks -- 5.5 People Risk and Conduct Risk -- 5.6 People Mapping -- 5.7 Identifying and assessing People Risks -- 5.8 Escalation of People Risks -- 5.9 Appetite for People Risk -- Notes06 People Risk in the boardroom -- 6.1 Board governance and maturity -- 6.2 Boardroom dynamics -- 6.3 The role of the Chairperson -- 6.4 The role of the CEO -- 6.5 The warning signs -- 6.6 Monitoring board behaviour -- 6.7 What are the main People Risks in the boardroom? -- 6.8 Managing People Risk in the boardroom -- Notes07 The influence of organizational culture -- 7.1 Culture in context -- 7.2 Understanding risk culture -- 7.3 Embedding a risk culture -- 7.4 Values -- 7.5 Trust -- 7.6 Example of risk culture and values in action - managing Health and Safety -- Notes08 Roles and responsibilities -- 8.1 The Three Lines of Defence model -- 8.2 People Risk mitigation -- 8.3 Clarifying responsibilities in the lines of defence -- 8.4 High Reliability Organizations -- 8.5 The crucial role of Human Resources (HR) -- 8.6 Human Resources Risk Management -- 8.7 The Assurance functions -- 8.8 Auditing corporate culture -- 8.9 Values audit -- Notes09 Improving decision-making -- 9.1 Making the Invisible Visible -- 9.2 Improving individual decision-making -- 9.3 Decision-making process -- 9.4 Checklists and decision-making -- Notes10 Personal responsibility -- 10.1 Codes of Conduct -- 10.2 Personal responsibilities -- 10.3 Job Descriptions -- 10.4 Individual Interactions -- 10.5 Personalized Codes of Conduct -- Notes11 Conclusion -- 11.1 Lessons learned -- 11.2 Regulation of People Risk -- 11.3 Starting the journey -- 11.4 What will success look like? -- 11.5 The imperative for change -- NotesGlossary of terms and abbreviations -- References -- Index.