Why Focus on Human Capital Risk?

By Oleg Lebedev

A featured article of our April 2020 edition of PRMIA's Intelligent Risk quarterly newsletter

The impact of Human Capital on the economies of entire countries and individual organizations cannot be  underestimated.  At  a  macro-economic  level,  the  quality  and  mobility  of  Human  Capital  are  important  factors  when  dealing  with  the  consequences  of  the  profound  transformation  of  the  world  by  technological  advancements,  the  globalization  of  trade  and  production  processes,  demographic  trends,  and  intense  migration  flows.  Human  Capital  is  firmly  on  the  agenda  of  the  World  Bank  and  many Central Banks as a key driver of sound economic performance1. In a micro-economic context, Human Capital plays a pivotal role as an important intangible asset, providing a significant contribution to a company’s profitability despite not being listed on its balance sheet. The focus of this article is on Human Capital and the importance of successful management of risk it creates in the context of an organization.

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About the Intelligent Risk

Intelligent Risk is PRMIA's quarterly publication, bringing all PRMIA members free access to knowledge and information about risk management for financial institutions as well as current information on PRMIA chapters, committees, academic partners, news and events.

Individual articles from each edition are published under our members only Risk Library resources section. PRMIA is sharing select articles from the April 2020 edition with the public. Get more articles like this by joining PRMIA today.

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