Expanding risk management systems: human resources and German banks

The management of HR risks has been in the focus of researchers lately. New regulations — especially in the banking industry — require companies to include HR risks in their risk management systems. What has been neglected in the academic literature so far is a discussion of how banks respond to these new regulations and include compliance in their HR risk management systems. What kind of risks emerge with regard to the different HR instruments used in banks is still an issue that has not been investigated in detail so far. Using the special case of German savings banks, which has not yet dealt with this question because of state protection, this paper analyzes how banks respond to the new regulation, using the case study approach. Based on the empirical material and theoretical insights, the paper explores how HR risk management systems in German savings banks are designed, what risks are included and what implications for the future design of HR risk management systems emerge. Finally, future avenues of research are addressed.