Final answer:
HRM processes that reduce hiring costs help lower a company's financial risk by minimizing the money spent on recruitment activities.
Step-by-step explanation:
When new HRM processes reduce the cost of hiring employees, they have reduced its financial risk. Financial risk generally refers to the possibility of a company losing money or not maximizing its financial resources. In the case of HRM processes, the costs associated with hiring, such as advertising positions, interviewing, and training, can be significant.
By streamlining these processes to be more efficient and cost-effective, a company can reduce the amount of money spent on hiring and consequently decrease its financial risk. The reduction in financial risk, in turn, can lead to increased resources for other areas, making it a strategic advantage as well.