Recruitment Vendor Management – Residual Risk vs. Inherent Risk
A Recruitment Vendor is necessary. Every organization needs a vendor – no modern big business can operate without getting the right equipment, tools or in this case, manpower services from an external entity.
Speaking of a recruitment vendor, I remember having a conversation with a prospect the other day and the Risk of a Recruitment Vendor was the hot discussion. The statement of “there is always risk regardless of controls” was brought up. My prospect has a point – a recruitment vendor contributes to the risk exposure of the organization which got me thinking… What analogy is best to help explain Inherent risk vs. Residual risk in recruitment vendor management?
For anyone dealing with putting a teenage driver on the road, this may help explain.
So, the regulations of a minimum age (16-21) depending which country you are from, completion of written exams with a passing grade, completion of physical driving exam with a passing grade were put in place. These regulations helped to set standards of acceptable risk, bringing the inherent risk of incident to a residual risk of incident. However, the risk of an incident still exists.
To help bring down the risk further, some have instituted controls or standards of limiting the number of passengers that a teenage driver can have in the vehicle, restricted the times a teenage driver is on the road, and even restricting the usage or distance the vehicle can be driven. But as with most standards these only help reduce risk if they are being done. A system or regulating body to check them is needed. And once again, even with every regulation followed, and every standard met, the risk is still there (as any parent of the driver knows), but it is residual risk and no longer Inherent.
In Human Resource and Recruitment, this holds true. Risk is always there. And although recruitment vendor risk can be different, every company needs to be able to measure their risks, bring the inherent to residual, and be able to make sure they are staying there. Sometimes this is mandatory compliance, sometimes it is best practice policy and procedure, and most times it is which Recruitment Agency you choose to partner with, but it is always a function a company needs to be doing. Ethical Recruitment Partner, like Rensol Recruitment and Consulting helps achieve this business need.
Contact us to learn more about our above and beyond capabilities, and how we can work together to meet your employment needs.
Rensol Recruitment & Consulting
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Phone: +63 2 931-0968
ABOUT THE COMPANY: Rensol Recruitment and Consulting, Inc. is the fastest growing recruitment agency in The Philippines. A career consultant that aims to go above and beyond the level of expectations of both the aspirations of the candidates and the dream team standards of employers through providing exceptional opportunities and unparalleled quality-driven recruitment services.
A business administration graduate from De La Salle College of St. Benilde, Angelo is experienced in business development, market research, logistics and analytics. A self-proclaimed romantic, he started writing as a hobby where it slowly turned into a passion, he allows his emotions to flow through his literary works to capture the heart of his audience and deliver his ideologies through wordplay and creative thinking, his specialty is freewriting and poetry, but he is also venturing to short stories and novels.
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