Managing risks

Why is this important for employers?

IMG_1901The threat of an order for payment of damages, or even a criminal conviction, should not overshadow other risks that lack of awareness of human pressures or psychosocial risks (RPS) pose to any organisation.

Enforcement risk, since its plans will be, if not abandoned, at least significantly delayed or even altered under conditions that it will not fully control.

Increased risk of internal confusion, since the rationale of the initial plans, acceptance, and even the commitment of managers and employees will be challenged, at least partially.

Lack of awareness of human pressures poses risks to any organisation, especially in change management situations.

Risk to human “resources”, since any request for change, overruns or continuous improvement has a potential cost:
erosion or premature fragility, demotivation,
ungovernable turnover, reduced capacity to adapt and, subsequently, ineffective management of stress.

Reputational risk, given that consumers are now aware of the conditions of production. Anything that affects working conditions mobilises opinion; the law is often only a reflection of society’s demands. The media reflect this public awareness in a way that is all the more “spectacular”, since the subject is visually less overt. No principal or investor should be ignorant of the reputation of the company to which it entrusts part of its future.

Governance risk, insofar as the functioning of the governing bodies may be profoundly and lastingly affected in their ability to drive change.

And ultimately, financial risk, generated by the other risks.