Psychosocial Risk Management in Organizations

What is it about?

Psychosocial risk management is an increasingly important, organization-level response to work-related mental health challenges. Whether motivated by a desire to improve employee wellbeing, exert control, achieve compliance, or manage reputation, the risk management process involves four key steps – risk identification; risk assessment; risk control; and monitoring and review. This chapter outlines considerations associated with each of these four steps and includes discussion of common psychosocial hazards and risk assessment tools used in workplaces around the world. Important risk control concepts such what is ‘reasonably practicable’ when minimizing psychosocial risk, and how the hierarchy of controls can apply to psychosocial hazards are discussed. Practical considerations when implementing risk management for psychosocial hazards, such as worker participation, bespoke risk controls targeted to critical risks with a focus on work design, and potential unintended consequences of a risk management approach, are also outlined.

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Why is it important?

Risk management processes aim to eliminate or minimize worker harm from exposure to workplace hazards. Enshrined in business practices for many years, these methods have recently been applied to psychosocial hazards, leading to a better understanding of psychosocial risk thresholds, and more nuanced targeting of occupational health psychology interventions. While psychosocial hazards are increasingly being treated like any other hazard in occupational environments, challenges nevertheless exist, mainly associated with the multi-factorial, dynamic, and often cumulative nature of psychosocial risk. Given these features, the cognitive psychology behind risk perception, judgement, decision making, and the social psychology behind the role of leaders and groups, can play important roles in determining the efficacy of psychosocial risk management. Motivations for businesses to undertake psychosocial risk management vary. In addition to moral obligations or productivity drivers to prevent workers being harmed by psychosocial hazards, a range of legal and policy frameworks exist, requiring workplaces to act.