Beyond Compliance: Embedding Psychosocial Risk Management Into Organisational Culture
Many leaders still approach psychosocial risk as a reactive obligation. The real question is: how can organisations move beyond compliance and embed practices that support both people and performance?
Psychosocial Risk Management as a Leadership Imperative
Amrop Carmichael Fisher recently partnered with Paul Clifford from Paul Clifford Psychology, to bring together senior executives, HR leaders and board directors for a roundtable discussion focused on this pressing challenge.
As organisations face increasing demands for psychological safety and employee wellbeing, psychosocial risk management is fast becoming a core leadership capability. It’s not just about meeting legal standards — it’s about shaping workplaces where people can thrive, and where performance is both human-centred and sustainable.
Paul challenged participants to shift the focus from box-ticking to capability-building. Psychosocial risk, he explained, is not a policy to be filed away. It’s a live, ongoing commitment that must be woven into governance, culture and the everyday fabric of the organisation.
Managing Risk To Build Strength
Participants acknowledged that psychosocial risk is often treated as a compliance exercise: a checklist of hazard assessments, controls and reporting.
While these steps are essential, Paul Clifford urged leaders to take a broader view:
“When we take on psychosocial risk, we’re not just managing compliance — we’re strengthening the pillars of the organisation. A mentally healthy workplace drives both wellbeing and performance.”
The focus is no longer just on preventing harm, but on creating the foundations for high performance, through psychological safety and sustained engagement. This is not an add-on. It requires a new mindset that places people and culture at the core of organisational strategy.
Sustaining Focus Over Time
One theme that echoed across the room was the difficulty of keeping psychosocial risk management on the agenda. Many organisations launch programs or frameworks, only to lose momentum over time. Paul stressed that effective psychosocial risk management is not a one-off initiative; it must be treated as a continuous organisational priority.
Several attendees noted that while initiatives were underway, few could confidently assess their long-term impact. Embedding psychosocial risk into core governance was seen as critical. This includes linking it to leadership KPIs, integrating it into reporting structures, and regularly evaluating controls and outcomes. Together, these steps help maintain focus and drive measurable, lasting progress.
Bridging Functional Gaps
The group explored how risk, wellbeing and performance are often managed by separate teams, each using different language and frameworks.
Paul encouraged organisations to move beyond this fragmented approach:
“We can’t divorce wellbeing and performance. The things that elevate mental health in an organisation also elevate its performance.”
Participants agreed that stronger collaboration between HR, OH&S, risk and executive leaders is essential. Shared data, joint decision making and a clear understanding of how psychosocial risk management links to business performance can help bridge the gap.
Paul noted that breaking down silos is more than good practice. It can also serve as a competitive advantage. When functions work together, they create the clarity and momentum needed to turn insight into meaningful impact.
Embedding Cultural Accountability
Culture emerged as both a challenge and an opportunity. One leader noted that it is difficult to work around culture. The only real solution is to face it head-on. Accountability at senior levels was identified as one of the most effective levers for change.
Middle managers also play a key role. Positioned closest to the work, they often spot emerging risks early and are well-placed to respond. This depends on having clear responsibilities and the organisational trust to raise issues early, without fear of negative consequences.
The conversation also highlighted that a mentally healthy workplace does more than reduce harm. It fosters resilience and trust, creating the conditions for sustained performance.
Building Internal Capability
Paul emphasised that while external consultants can provide valuable guidance, they cannot own the process. The most effective strategies develop internal capability, equipping teams to manage psychosocial risk as part of business as usual.
External partners can play a targeted role by supporting early implementation or helping to embed ownership as maturity grows.
Recruitment practices were also explored. Leaders reflected on the importance of hiring for emotional intelligence, adaptability and cultural fit, particularly in high-pressure or complex environments. One participant noted that soft skills and values alignment often determine long-term success more reliably than technical expertise.
“The people in the organisation are best placed to know what the hazards are, to know what the risks are and to know what the best solutions are.”
Translating Insight Into Action
The session closed with a shared understanding: psychosocial risk management is not a compliance exercise. It is a core leadership responsibility that underpins both organisational performance and sustainable wellbeing. For many organisations, the foundations are already in place. The opportunity now is to strengthen existing efforts, align them with business priorities, and embed them more deeply into culture and operations.
Embedding Psychosocial Risk Management: Three Questions for Leaders
To explore how your organisation can take the next step, contact Paul at Paul Clifford Psychology.