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MIDDLE EAST
MARSH REPORT UNDERSCORES IMPORTANCE OF MITIGATING EMPLOYEE-RELATED RISKS
risks than their global counterparts and view the HR and risk functions within their organisation as important in tackling the risks . Risks that ranked higher in terms of severity and likelihood to happen included natural disasters and extreme weather , inadequate personal catastrophe cover and suboptimal HR technology . Weak employee benefits administration , poor management of benefit exposure and disparities in executive / workers rewards were also ranked among major risks .
According to a new report from Marsh , a leading insurance broker and risk advisor and a business of Marsh McLennan , organisations in the Kingdom of Saudi Arabia face a range of employee-related risks – from technology disruption to workforce practices , governance and sustainability – which could , if left unaddressed , have a dramatic impact on their future success .
The global report , People Risk 2024 , draws on the views of 4,575 human resources ( HR ) and risk professionals – including more than 100 participants from the Kingdom – and ranks risks by likelihood and severity across five key pillars : technological change and disruption , talent leadership and workforce practices ; health , wellbeing and safety ; governance , compliance and financial ; environment , sustainability and protection .
According to the research , the mismanagement of AI ranked as the key concern among KSA respondents with 39 % worried about employees ’ over-reliance and complete trust in AI-generated content without proper verification , along with a concern about the erosion of human interaction and personalisation in customer service and employee interactions ( 35 %).
Respondents from Saudi Arabia broadly appear to exhibit a higher level of concern regarding people
Bassam Al Bader , CEO of Marsh McLennan , Saudi Arabia , said : “ Organisations in the Kingdom of Saudi Arabia recognise they have a role to play in the comprehensive strategic framework to reduce the Kingdom ’ s dependence on oil , diversify its economy and develop a wider range of services for the community . However , achieving these ambitious targets requires companies to develop new approaches to managing the people-related risks within their operations . The People Risk 2024 report demonstrates that employees are willing to deploy innovative technology and implement new approaches in support of the remarkable changes taking place in the Kingdom . However , it also suggests there is a clear need for greater support within organisations to enable them to do that effectively .”
Mahmoud Ghazi , Chief Executive Officer , Mercer Middle East , added : “ The report findings demonstrates that Saudi organisations are performing well compared to their global peers in some areas . We can see that 75 % of respondents in the Kingdom assert that their HR function effectively manages risk associated with workforce issues , and 99 % say that HR and risk functions in their organisations are collaborating to mitigate people risks . This demonstrates the significant progress that has been made in recent years .”
To address AI people issues , Marsh recommends that organisations should collaborate with leaders across their organisation to understand the advantages and risks of AI , evaluate uninsured scenarios , encourage safe adoption and build a digital-first people strategy . �
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