The DEI Reset: A Smarter Way to Embed What Matters

Use these strategies to assess diversity, equity and inclusion (DEI) risks and opportunities in an uncertain climate.

CHROs and HR leaders face complex DEI challenges head-on

As organizations aim for inclusivity, HR leaders find themselves in a tricky balancing act: managing compliance demands, business needs, and employee and stakeholder expectations for inclusion. This calls for a smart DEI risk management approach that ensures initiatives meet both legal and compliance obligations and align with business goals.

Here’s the thing: DEI isn’t a single entity; it’s a blend of practices intricately woven into various workflows. A nuanced view allows HR leaders to pinpoint specific risk drivers and craft targeted strategies to tackle them, to drive impact and nurture an inclusive culture.

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    3 steps to manage DEI risks and opportunities effectively

    Adopt a comprehensive approach to DEI risk management — one that takes into account the intricacies of DEI initiatives and recognizes their potential vulnerabilities and strengths — to effectively navigate high-uncertainty climates.

    Step 1: Classify specific risks with a nuanced approach

    The conventional approach to risk management requires determining whether DEI is at risk or not. Gartner’s recommended approach suggests determining which specific parts of your DEI strategy and initiatives might be more exposed to risk — and which parts are not.

    Consider these actions to enhance risk classification:

    • Break down DEI initiatives to identify specific risk areas. Dissect each component of DEI strategies to understand how they integrate into business processes and where the strategy might be at risk.

    • Develop a structured process for regular risk evaluation. Establish a consistent schedule for risk assessments to ensure early identification and address potential issues.

    • Encourage open conversation with business leaders. To pave the way for collaboration, confirm alignment and connect with leaders organizationwide to build a shared understanding of DEI risks.

    Leverage cross-functional teams to gain diverse perspectives on potential risks. This collaborative approach not only enriches the risk assessment process but also enhances the organization’s ability to respond effectively.

    Step 2: Explore solutions based on unique drivers of risk

    Understanding the root causes of risk exposure allows HR leaders to develop strategic mitigation plans. DEI initiatives often face challenges due to external factors (such as regulatory changes) or internal factors (such as organizational culture). Rather than assume that all high-risk initiatives must be eliminated, identify specific elements that increase risk and adapt them accordingly.

    Engage with communications, legal, and talent analytics leaders to ask critical questions about:

    • Messaging and perception. Evaluate how DEI initiatives are communicated within and outside the organization. Misunderstandings can increase risk exposure.

    • Legal compliance and changes in legislation. Stay informed about evolving legal landscapes and how they impact DEI strategies, to ensure compliance and reduce legal risks.

    • Measurement and strategy alignment. Ensure that DEI metrics align with business objectives to help demonstrate the value of DEI initiatives and reduce strategic risks.

    This proactive approach tackles immediate issues and builds relevant, targeted mitigation plans.

    Step 3: Continually evolve by embedding regular monitoring practices

    For proactive risk management, establish pulse checks with key stakeholders to:

    • Revisit risk assessments. Regularly review and update risk assessments to reflect internal and external shifts.

    • Evaluate DEI alignment with business outcomes. Continuously assess how DEI initiatives contribute to business and HR priorities, and adjust strategies as needed.

    • Detect emerging risks early and seize opportunities for growth. Early spotting of potential risks allows for timely intervention, while identifying opportunities quickly enables strategic growth.

    DEI management FAQs

    How can HR leaders best manage DEI risks?

    HR leaders can manage DEI risks by adopting a nuanced approach to risk classification that accounts for the unique drivers of risk and embeds regular monitoring practices. This ensures that DEI initiatives align with business priorities and helps mitigate potential risks.

    What role do HR leaders play in DEI risk management?

    HR leaders are crucial to managing DEI risks and opportunities but must work in close partnership with legal, compliance and other senior leaders.

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