Introduction to financial risks, payroll errors, and fraud
FREE03 – People Professionals and Finance
This CIPD Level 0 learning video, part of the FREE03 – People Professionals and Finance unit, introduces key financial risks linked to people practice and addresses assessment criteria AC 3.1. The video explores critical areas including payroll errors and fraud, non-compliance penalties, poor contractor management (including IR35 considerations), and the financial impact of high turnover, uncontrolled overtime, and absence-related costs. By watching this resource, you'll gain a foundational understanding of how litigation, settlement costs, and pension obligations affect organisational finances, equipping you with essential knowledge to identify and mitigate financial risks in your HR role.
Assessment Criteria 3.1
Explain key financial risks linked to people practice.
Indicative Content
To include: payroll errors/fraud; non-compliance penalties; poor contractor management (IR35 where relevant); high turnover; uncontrolled overtime; absence and wellbeing costs; litigation and settlement costs; pension obligations.
What You'll Learn
Video covering: Introduction to financial risks, payroll errors, and fraud
About FREE03 – People Professionals and Finance
To develop learners’ understanding of essential finance concepts in business and how people professionals use financial insight to support workforce decisions, budgets and organisational performance.
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