Know What You’re Solving For: Risk Management
From candidacy to hire to separation or retirement, your company likely collects, stores, and transmits employee data. Needless to say, it’s a necessity for your employees to get paid, enroll in benefits, and be able to take advantage of them. And if you really want to optimize employee experience, this data (and more) needs to constantly be flowing in a number of directions to various vendors, ensuring seamless access.
The CHRO, who manages a self-insured health plan, is essentially the CEO of that health plan. Being that financial fiduciary means considering financial risk. Such risk is posed by high medical costs, for example, of treating catastrophic illnesses like cancer or the progression of chronic diseases like diabetes. Managing COOs, on the other hand, will be more preoccupied with operational risk. In this case, they’re working to recruit and retain the right people with a smart total-rewards strategy and a desired employee experience that makes their enterprise an employer of choice.
This age of digital transformation is an inevitable path for large employers to go down—after all, it brings better experiences for end-users and helps reduce costs. As digital transformation takes hold in a business, more and more data is generated that creates a new responsibility for the organization: to act as the information fiduciary for employees and manage data risks responsibly.
Jointly with the CIO, the CHRO must now understand and manage risks like the ones we examine below:
The 2019 Data Breach Investigations Report by Verizon puts it bluntly: “Regardless of the type or amount of your organization’s data, there is someone out there who is trying to steal it.”
These days, businesses are hot spots for hackers and scammers, putting them at high risk for data breaches. If and when one does occur, the repercussions can include a severely damaged reputation and loss of employee trust—not to mention, potential lawsuits and even criminal charges. Another report estimates there were more than 6,500 publicly reported breaches in 2018 that led to about 5 billion records being compromised.
Keeping personal health information (PHI) and personally identifiable information (PII) secure is critical, and it needs to be safeguarded at all times. A breach of this information could result in legal action, significant financial penalties, and a number of other obvious dangers.
Fortunately, there are several compliance measures at the state, federal, and international levels in place to protect your employees’ data. Laws like HIPAA are well known, and more legislation in states around the country is being proposed and passed to further hold companies liable for managing this sensitive information in a safe way.
As employers execute their data processing methods, it’s critical to ensure all laws and compliance measures are being followed throughout the entire organization. For example, appropriate training must be provided for those employees who are handling personal data—whether they do so on an ongoing basis or just once.
Vendor management and complexity in implementation
Offering your employees a wide range of valuable benefits means contracting with third-party vendors. Doing so is nearly unavoidable in today’s benefits landscape. While it’s important for your benefits strategy, it increases the amount of risk for breaches involving your employees’ data.
Vendors must be vetted for security compliance, and risk managers need to ensure their company can use a secure and smooth connection for integration and communication purposes. And when you apply features that greatly improve the often-siloed benefits experience, like SSO, additional security vetting and set-up are required, meaning more heavy lifting for your IT team.
The best benefits and the best protection
A robust benefits package touches nearly every part of a person’s life, but it also means collecting and using their personal data—and hackers know this. Phishing scams are becoming more sophisticated, mobile users (who are on the rise) are becoming precise targets, and even some chatbots are turning into vehicles for obtaining information.
Staying ahead of these risks and developing solutions is complicated and can be a huge effort for any organization. A platform like eOS can thread these pieces together for you in a secure manner. It’s absolutely necessary in order to protect your employees’ data while still being able to offer them the benefits they’ll love.