A Better Framework to Manage Psychological Risk

Over the past few years, companies have been making a concerted effort to address the psychological risk in the workplace. A recent survey from EY analyzed the effectiveness of these efforts and found that some changes were necessary. 

The authors believe that companies have been using a ‘more is better’ approach that is not only ineffective but has increased costs, as well as increased the administrative burden of risk management.  

From a management perspective, this course of action has created "impractical risk management processes that are driven by overlapping hazards and misidentified control failures."

The authors do offer a solution, based on evidence, for a better framework that simplifies hazard identification, management, and oversight. They say that this new framework involves a "better way of thinking about and effectively managing psychosocial hazards. This approach supports you and your organization to get to root causes quickly and supports oversight of psychosocial risks as they are experienced by your employees."

The framework is underpinned by three stages:

Map: Use behavioral and systematic triggers to identify specific hazards and assess their associated risk by understanding the root causes of harm.

• Understand context specific examples of psychosocial hazards through consultation with all employees.
•  Use the framework to systematically map risks.
•  Use the framework to understand how hazards manifest both organization-wide and at a geographic or team based level.

Manage: Implement controls which target the root causes (triggers) of the identified high impact hazards to meaningfully reduce risk.

• Prioritize hazards based on the potential for harm and the organization’s context.
• Design and implement controls that are specific to identified triggers.
•  Involve those affected in the design and evaluation of controls to make sure they are relevant.

Monitor: Track changes in risk to show how your risk profile evolves over time

•  Establish clear, meaningful metrics that reflect both risk reduction and employee well-being.
• Use data sources such as engagement surveys, incident reports, and operational metrics to monitor progress.
• Regularly review and refine controls based on what the data reveals.

Using this system, the authors believe that companies can implement controls that address the root causes of psychological risk. "This targeted approach empowers employees to share their real experiences, helps leaders to act on what matters most, and facilitates monitoring that is meaningful, tracking the effectiveness of interventions and driving continuous improvement. Ultimately, embracing this framework means investing in a healthier, safer workplace where risks are managed proactively, resources are used wisely, and the well-being of your workforce is at the heart of every decision."