Managing Demographic risk in large organizations

As employees get older and retire in large organizations, The organizations may appear to be lean and profitable, but the organizations can face significant losses of critical knowledge and skills, as well as decreased productivity. In some cases, an organizations ability to conduct organizational business may even be hindered. When people begin retiring in droves, there may be no one left who knows how to carry out usual business activities. The nature of risk could be Productivity risk (due to aging workforce) or capactiy risk (due to mass retirement). Therefore there is an immediate need to access the risk and mitigate the problem. The solutions is to compute productivity risk and may be re- employ the retiring employees to compensate for the immediate loss of knowledge. The best strategy could be to deploy knowledge management tools to avoid productivity risk.