Any operation with material impact on financial reporting and regulatory compliance requirements must manage significant risk factors. An HR Employee Service function operates within such a risky environment. An effective and legally compliant focused internal risk and controls management strategy is the cornerstone of proactive mitigation of risks. This article will summarize an industry standard controls framework and examine key concepts applicable to the elements of this framework.
HR Employee Services Risk Environment
Within the Payroll & Employee Reimbursement functions there are a myriad of fiduciary risks with potential impact on financial reporting processes, risk of financial loss, and significant regulatory compliance risk. Benefits Administration is impacted by legal compliance requirements as well as financial reporting and fiduciary risk impacts in areas of retirement and stock benefits management. Relocation is faced with compliance to immigration laws and complex tax regulation. Employee information services must manage risk related to data privacy and legal risk (liability) caused by potential dissemination of incorrect information.