Risk management

The People Factor in Organizational Risk Management

Organizational risk management has broad applications, from mitigating financial risk to recognizing and managing risks in safety, quality, health, legal liability, and the organization's impact on the environment. Risks to and from an organization's employees fall within the scope of risk management, typically with a focus on reducing the risk of accidents, injuries, or illness and putting controls in place to prevent employee theft or fraud. Workplace safety, for example, is commonly seen as part of risk management, and that concern extends to aspects of employee health, such as fatigue, that can impact accidents and error rates.

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In recent years, it has become clear that other issues of health and safety in the workplace that are not typically monitored by risk management can have significant effects on an organization’s costs, output, innovation, profits, and growth. Key among these are employee wellbeing and mental health, which are traditionally seen as “soft” issues and fall within the domain of human resources.

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