Greetings!
Welcome to the last issue of Just Rewards for 2012. In this newsletter for HR and reward professionals we look at how we can manage risk when rewarding our employees.
We've asked Keith Waitt, a risk management specialist based in New York, to consider the dilemma evident in the financial services industry, but also relevant elsewhere. If risk-taking achieves growth, how should we reward risk-taking activities?
In this issue:
■ Guest feature on balanced diet of risk and reward
■ News and updates
■ Tips to manage reward risks
■ Next newsletter - January 2013
If you've found something in this newsletter helpful, or there's a topic you'd like to see us cover in a future issue, please drop us a line.
Best wishes Sylvia Doyle Reward First ® People Consulting
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Keith Waitt of Consultancy Matters LLC, a risk management training consultancy writes: "Motivating Bankers: Balancing a Diet of Risk and Reward"
Banks take risks. That is how they make money. To be competitive, banks also need to innovate, introducing further levels of risk. Risk aversion, therefore, has no place in a long-term growth strategy of a bank (or any company for that matter).
The recent financial crisis was a clear demonstration of the "irrational exuberance" of risk taking in the western banking world. New innovative products were created, billions of pounds of risk were added on to bank balance sheets, and rewards (to the banks at least) were bountiful.
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