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Aon's 2022 Executive Risk Survey
Over the last few years, organizations have recognized that business risks and people risks are intertwined. This trend is reflected in the fact that eight out of the top 10 business risks in Aon’s 2021 Global Risk Management Survey were people-related. Meanwhile, Aon’s 2022 Executive Risk Survey identified workforce shortage concerns as number seven in the top 10 issues that business leaders spend a great deal of time on.
With people-related issues becoming a top business risk, the traditional role of the HR leader has expanded. Effective people leaders are strengthening their role within the organization, partnering with risk leaders and the C-suite, and ensuring their firm’s enterprise risk management systems include critical aspects of human capital management.
“Many of our clients include people-related metrics regarding progress against diversity goals, turnover rates and a company’s reputation amongst employees as a standing agenda item in the boardroom,” says Amy Jennings, a partner in Aon’s Talent Solutions practice.
As these topics gain priority for the C-suite, HR needs to prepare with the right data and an understanding of what it means for the current and future state of the business.
Annual benchmarking, engagement surveys and other point-in-time assessments are valuable data points for developing a talent strategy. But when it comes to evaluating people-related risks holistically, these data points are only part of the picture. They can become outdated as external variables — including the regulatory landscape, financial stakeholder expectations and peer practices, as well as changing employee expectations — rapidly evolve. Instead, companies need a more strategic approach to managing people-related data and insights to mitigate business risk.
We categorize emerging people-related risks across four primary areas that, taken together, provide a more complete picture. These risk areas can be evaluated by Aon’s Digital Business Insights (DBI) platform — a cloud-based tool that identifies and monitors every aspect of people risks in real time.
Capability Overview
Digital Business Insights
Capability Overview
Risk Management
Report
Aon's 2022 Executive Risk Survey
Increase in performance during times of change, innovation or uncertainty seen by companies that target wellbeing solutions.
Source: Aon’s Human Sustainability Index
Increase in insider cyber threats, both inadvertent and malicious, over the last two years.
Source: Ponemon Institute, 2022 Cost of Insider Threats Global Report
“It is common for candidates to request data on promotion rates, attrition levels, pay equity and other DE&I reference points,” says Laura Wanlass, who leads the Human Sustainability practice in Aon’s Talent Solutions. “Some candidates also ask more broadly about firm culture and what support mechanisms are in place to ensure sustainable performance once goals are met.”
In today’s rapidly changing economic and business landscape, people leaders must continually monitor and interpret their companies’ risk profiles relative to their peers. This will enable leaders to make better decisions for sustainable business performance and quickly adapt to evolving business risks.
As people leaders track risks related to human capital along the four pillars we’ve just identified, they should be prepared to speak to C-suite about the following topics:
Aon’s DBI can help firms quickly strike the right balance between optimizing people spend and planning for the future. Contact our team at [email protected] to learn more.
Loss in shareholder value in the year following a major reputational crisis. The impact on prospective talent pools can linger for years.
Source: Pentland Analytics’ Respecting the Grey Swan
General Disclaimer
The information contained herein and the statements expressed are of a general nature and are not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information and use sources we consider reliable, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.
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