Protecting Business from Employee-Related Events: What to Do

Protecting the business
  • Employee-related events, intentional or accidental, pose significant threats to businesses, necessitating robust risk management strategies.
  • Regular training, a safe reporting environment, robust systems, and continuous feedback mitigate risks from unintentional mistakes.
  • Managing employee disputes effectively involves open communication, mediation, conflict resolution training, and fostering a positive work environment.
  • Responding to employee lawsuits requires the expertise of a business litigation attorney for defense strategy and preventive measures.

Often considered the backbone of any organization, employees can paradoxically pose the most significant threats to a business. This is primarily due to their deep familiarity with the company’s operations, access to sensitive business data, and potential susceptibility to manipulative external influences.

According to a study by the Ponemon Institute, 60% of cyber attacks are carried out by insiders. Of these attacks, 75% involved malicious intent, and 25% were accidental. The Harvard Business Review also noted that employee fraud causes businesses to lose 5% of their annual revenues on average. As such, safeguarding businesses from employee-related events becomes critical in the corporates’ risk management strategy.

As much as businesses rely heavily on employees for success, they must also be vigilant and ready to take the necessary steps to prevent malicious or accidental actions from harming the organization. Here are a few areas that must focus on:

Employee Awareness

Often, employees could unintentionally make mistakes that cost businesses dearly. These errors range from simple data entry errors to accidentally clicking on a phishing email link. Such mistakes can result in significant financial losses, company reputation damage, and potential legal complications.

Regular Training and Education

Regular employee training and education are of utmost importance to mitigate the risks associated with unintentional mistakes. Such programs should focus on teaching employees about the various forms of potential threats and how to identify and avoid them. This includes training on cybersecurity best practices, data handling procedures, and guidance on detecting phishing attempts.

Establishing a Safe Reporting Environment

Employees should feel comfortable reporting their mistakes without the fear of reprisal. Establishing such an environment encourages transparency and allows the organization to rectify errors promptly, thereby preventing small mistakes from escalating into significant issues.

Implementing Robust Systems and Processes

Implementing robust systems and processes that can detect and prevent potential errors can serve as a safety net. This includes error-checking software, enforcing strong password policies, and conducting regular operations audits.

Continuous Feedback and Improvement

Continuous feedback allows employees to learn from mistakes and improve their skill sets. Regular reviews and constructive feedback ensure that employees are aware of their performance and areas for improvement. Furthermore, it encourages a culture of continuous learning and professional development.

Employee Disputes

Getting caught in employee dispute

Employee disputes can significantly harm businesses, decreasing productivity, compromising workplace harmony, and potential reputational damage. Disputes might arise for various reasons, including conflicts of interest, disagreements over responsibilities, or perceived inequality in the workplace. These conflicts can disrupt the work environment, lower employee morale, and even result in costly legal actions if not addressed promptly.

There are several methods that businesses can employ to manage and resolve employee disputes effectively:

Open Communication

Encourage open communication and dialogue between the concerned parties. This can often lead to a mutual understanding and resolution of the issue. Open communication ensures transparency, avoiding blaming or misunderstanding when fixing a problem.


Mediation can be a helpful tool when open communication doesn’t resolve the issue. A neutral third party can facilitate a conversation between the conflicting parties, helping them reach a mutually beneficial resolution.

Conflict Resolution Training

Providing employees with conflict resolution training can equip them with the skills to handle disagreements professionally and constructively. This can ultimately help to prevent disputes from escalating.

Foster a Positive Work Environment

By promoting a positive, inclusive, and respectful work environment, businesses can reduce the likelihood of disputes arising in the first place. You can do this by encouraging employees to work together in teams, providing equal opportunities for all, and nurturing a culture of respect.

It’s important to remember that while disputes are inevitable in any workplace, their impact can be minimized through proactive and effective management strategies. By treating disputes as opportunities for improvement rather than setbacks, businesses can turn potential negatives into positives, bolstering their resilience and fostering a healthier, more harmonious workplace.

Employee Lawsuits

Getting lawsuit from employee

Employee lawsuits are a serious matter that can have far-reaching implications for a business. They can result in significant financial penalties and damage the company’s reputation and even affect employee morale and productivity.

When faced with an employee lawsuit, responding promptly and appropriately is crucial. Cases often involve allegations of unlawful actions such as wrongful termination, discrimination, workplace harassment, or wage and hour violations.

This is where the role of a professional business litigation attorney becomes indispensable. These legal experts can provide valuable guidance, from understanding the nuances of the lawsuit to formulating a robust defense strategy. They can help navigate the complexities of employment laws, which vary from state to state and can be intricate.

Moreover, a professional business litigation attorney can also assist in preventive measures, such as drafting and reviewing company policies and employment contracts to ensure compliance with applicable laws. By doing so, they help minimize the risk of future lawsuits.

Final Thoughts

If not appropriately managed, employee-related events can cause businesses significant financial and reputational damage. It is, therefore, essential to take the necessary steps to protect your business from these risks. With the right combination of proactive measures and open communication, companies can safeguard their interests and protect themselves from potential risks employees pose.

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