Guidance that HCR also supports managing human capital risk: each reporting area should carry a narrative 'active risk management' section summing up its main risks and opportunities (ISO 31000 and ISO 9001 give further guidance). Table 1 gives examples by risk area. Along the employee life cycle: hiring (suitable candidates drawn from a wide pool who meet integrity, skill and qualification standards), capability, key staff and succession, remuneration (pay linked to performance, variable pay shared out on approved criteria, fair structures across segments), termination (off-boarding on time, payments within policy) and workforce performance (managers able to motivate people and manage performance). In compliance: labour law (awareness of the regulatory setting) and discrimination or harassment (acceptance, escalation, investigation, confidentiality and disciplinary processes). In workforce planning: a supply of talent that matches strategic needs. Each organization works out which of these risk types fit its situation. To track how good the HR processes are, it is advisable to survey inside (and, where it makes sense, outside) stakeholders on recruitment and onboarding, terms of employment and the working environment, in-house training, support for supervisors and managers on leadership, conflict and change, and how terminations are handled.
The graph holds this control, the 0 it maps to, and the evidence behind each claim, over MCP and REST.