Employee benefits risk management (EBRM) helps reduce people risks and rising healthcare costs
The cost and complexity associated with managing employee benefits in a compliant, prudent and fair way makes employee benefits risk management a key priority.
Even so, just two in five businesses (41%) believe they have effective EBRM for insurance and benefit design in place, putting them at risk of errors and poor decisions around design, financing, administration and vendor management. All of which can have substantial implications for the business, potentially leading to reputational and financial damage.
When asked about governance and financial risks they face, HR and Risk professionals highlighted five areas EBRM can help mitigate. This ranges from the administration and fiduciary of employee benefits plans to benefit decision-making and accountability.
Managing the risk associated with the increasing cost of health, risk protection and wellbeing benefits is also a top priority. Not least as our health trends report [LINK] reveals healthcare costs are rising at three times the rate of inflation. Pension benefits can also be challenging to administer and manage, especially where dynamic investment strategies or legacy arrangements exist.
Category Risks:
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