What risk factors associated with human resource management could pose significant inherent risks?

Inherent risk: This refers to the risk associated in the environment which indicates a loss particularly due the absence of any action or controls. these risks occur particularly when the transactions are complex in nature

The inherent risk factors which directly affect the human resource management process are explained below:

•  Effect on payroll costs due to the economic conditions
•  The availability of skilled labors which affects the inherent risk
•  The risks due to the additions and terminations of employees with high turnover
•  The labor contracts and various legislations existence increase the affects the inherent risk
•  Controls in computation of compensations, including share-based compensations