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Employee Risk Assessment is a practice of appraising employees in terms of potential losses they can incur to an organization employing them. Conception of defining employee risks is based upon an assumption that people have potential to bring losses as well as profits to an organization, so it is an interest of organization to accurately measure and mitigate these risks. Employee risk assessment can be carried out through a number of different corporate functions (HR, customer relationships, performance reporting, team management, inventory management, etc), so a bigger picture of risks associated with a specific person can be formed at the highest organizational level where executives will make a decision on further employment of this worker. These risks include:
- Inclination to misconducts: if a person often violates a discipline, if he or she tends to be rough with clients, aggressive with co-workers, etc, then it is obviously a risky person who can incur a great costs to the company;
- Criminality: if a person has been approved as a stealer (or as any other kind of law breaker) in the past, then to mitigate possible risks of relapsing it is necessary to give him or her a trial period at lower positions, so this employee can be given a chance to prove his or her withdrawal from criminal behaviors;
- Health: if a person suffers from serious health impairments, or is addicted to alcohol, drugs, etc, then a company employing him or her risks to pay high compensations for his or her recovery in future, so many companies approach such employees with a great caution, however, it is necessary for business to respect laws which prevent any discrimination of disabled people;
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