Human capital management accounting issues for SOX compliance with Basel III final framework operational risk standards

Abstract Although the Human Resources (HR) function is an eminently transversal function of corporate accounting, neither the HR Managers nor the other corporate functions have been trained to perform the interaction tasks of their workstation to act in real time as an organizational team based on the operational risk appetite threshold. The compartmentalization of teaching in universities and MBA programs in specialized disciplines have not solved the problem of real‐time integration of HR‐Finance processes. Few graduates today have the cross‐cutting or vertical skills required to act from their workstation as an organization team based on the risk appetite threshold to create value. This issue is now coupled with the obligation to comply with laws which now require CEOs and Boards to provide shareholders with the Human Capital Management data that was previously lacking in Governance reports and financial reporting. With the 100% Liquidity Coverage Ratio requirements in force since January 2019 for Working Capital Requirements, and investment financing, the challenge for the HR function is now “Thinking Human Resources from the point of view of financial management”: 1. 90% of employers want to make cross‐cutting management effective (PWC and Thornton). 2. For 91% of Human Resource Managers, cost control remains an imperative (Wiles).