Affiliations: [a] Department of Management, University of Isfahan, Isfahan, Iran
| [b] Department of Management, Faculty of Management Sciences and Economics, the Lebanese University, Beirut, Lebanon
Correspondence:
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Corresponding author: Ali Safari, Department of Management, University of Isfahan, Isfahan, Iran. E-mail: a.safari@ase.ui.ac.ir.
Abstract: PURPOSE:This study aims to bridge the literature gap and provide a comprehensive and clear vision of managing Human Capital risk through an easy-to-apply risk management methodology. In addition, to provide an integrated process to manage Human Capital risks. METHODOLOGY:This paper conducted a mixed-method approach; risks were gathered by analyzing 14 semi-structured interviews with corporate leaders and HR expertise in 14 ICT companies in Isfahan. In the quantitative phase, variables were assessed by two methods; FMEA and Fuzzy analysis in 14 companies. FINDINGS:Results show that despite realizing the importance of human capital in achieving goals and competitiveness, companies are not ready to mitigate the Human Capital risks. Detected Risks are divided into behavioural and attitudinal risks. The Employees’ demotivation, Leaving work after receiving the required training, and Lack of commitment to the delivery time or quality are the most urgent risks that should be mitigated as prior in the ICT companies in Isfahan. ORIGINALITY:This paper is one of the few studies that holistically dealt with Human Capital risks by providing practical and managerial strategies and recommendations to mitigate the risk exposure. This paper is also one of the leading studies in introducing the FMEA method in measuring this type of risk.
Keywords: Human capital risk, human resource risks, behavioral risks, FMEA, fuzzy
