Human capital is an asset and a risk

The value of people in our organisations is an intangible asset, but it’s not on the balance sheet.

Stock prices of our companies do little justice in reflecting the contribution of our human resources to their listing figures.

To most senior executives, this is a troublesome problem because assets present as both an influencer of value and a predictor of risk.

In our calculations, in our management of risk, it is vital that we don’t forget the human capital in our organisations.

They present as an asset, but...

They carry with them risk.

Leaders should ensure they ‘value’ all their assets, assess their risks and respond accordingly.