Human Error and Enterprise Risk Management

Posted by The ALS Group on Jun 18, 2013 9:45:14 AM

When evaluating your company’s risks, one concept that is frequently overlooked is the idea of how human error could impact your organization.  Until recently, there has been very little written on this subject. However, in the recent issue of the RIMS Risk Management Magazine, an article by Tony Kern and David McKay touched on this point and successfully demonstrated how human error is one risk that companies must continually monitor.

This is never more evident than in the opening paragraph that states “errors [can] rob profit and resources at every level of an organization.  They undercut quality, safety, IT security, and customer service”  The fact that human error is not, necessarily, a direct insurable risk means that it can effect anything and everything from your company’s profit margin, Workers Compensation, property, and your firm’s Liability Risk.

This article reinforces The ALS Group’s belief in approaching risk in a three-dimensional way and illustrates the need for establishing a solid Enterprise Risk Management program into an organization.  By understanding the effect human error can have on all areas across an organization; senior management can than look beyond insurance to mitigate risk.  The best way for this to occur is to implement a quality safety program and Best Practices that will provide senior management with the transparency they need to assure themselves and the board that human error is properly controlled.

If you would like to discuss the ERM process, implementing strategies associated with it or mitigating the effects human error can have on your company, please feel free to contact Albert Sica at 732.395.4251 or at

Topics: Enterprise Risk Management (ERM), Enterprise Risk Management, ERM, HCP, Human Capital, Human Capital Practice, Risk Management Blog, Strategic Risk Management, Total Cost of Risk (TCoR)

The ALS Group

Risk Management Blog

We manage more than a quarter billion dollars of premiums for a diverse range of clients around the globe. 

Our areas of expertise include:

  • Enterprise Risk Management (ERM)
  • Cyber Security & Cyber Liability Insurance
  • Construction Management
  • Customized Risk Management Assessments (RMAs)

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