AMRAE survey suggests French undervalue HR risk management as value driver

The results show that while companies are engaged in meeting legal requirements for employee mental and physical health they are not making the most of risk management tools to mitigate the threat. The research reveals that only one in every five risk managers surveyed view a detailed mapping of human resource risk as a key driver to success within their organisation. A further 60% said that the task is important but not a priority. AMRAE disclosed the results of the survey of 30 leading French companies during its third annual conference on risk management and human resources that took place in November in Paris.hideGiven that the companies surveyed were large multinational groups with comprehensive risk management systems in place the results were unexpected, said Abdel Bencheikh (pictured above), president of AMRAE’s HR commission. “The result was a surprise for me. I expected much higher levels of awareness among large, globalised companies,” Mr Bencheikh told Commercial Risk Europe. “These are companies with a very mature view of risk management, and it was surprising to find out that in only 20% of companies risk managers see HR risks as a driver for the development of their company. After all, the companies surveyed have mapped HR risks and have identified the major risks that they face in this area and they already have in place governance tools to deal with and report them.” There has been a reported increase in cases of stress and burnout among French workers in the media over the last couple of years. Several suicides have been linked to working conditions placing the issue firmly on the radar of legislators that have implemented new rules to force companies to deal with the problem. In November, a new study issued by training consultancy CEGOS claimed that one out of every four French workers has suffered a severe psychological condition during the course of his or her career. More than half of the 1,135 workers and managers surveyed by CEGOS identified deterioration in the social climate of their companies. Such findings point to a potential increase in HR risks. The regulatory backlash that has hit French companies in recent years may provide a clue as to why companies still see the management of HR risks as an obligation rather than a value driver. “It seems to me that companies strive to meet regulatory requirements linked to HR risks, but have not arrived to the point where they can make the link between those risks and their business objectives,” Mr Bencheikh said. “It is however an issue that must be taken to the highest levels of the company. If only for marketing and communication reasons, it is something that deserves the attention of boards.” He also said that the insurance market could boost the management of HR risks in France by better acknowledging mitigation efforts carried out by firms and their risk managers. “It is necessary for the insurance market to become more innovative when it comes to solutions for HR risks,” he said. “Our insurance partners are still working very much with an actuarial approach on this issue. They do not price anything that they have not been able to produce a statistic on in the past. Nobody is willing to evaluate whether a company’s policy will reduce accidents or health-related absence in the medium to long term. They should be able to accompany their clients in this effort in order to encourage them to implement improvements.”

AMRAE survey suggests French undervalue HR risk management as value driver

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