Behavioural Risk Management, which extends from the broader field of Risk Management, is the process of managing workplace behavioural risk factors pertinent to Organisational Behaviour, Industrial and Organisational Psychology.
Behavioural risk management applies to risks connected with the workplace behaviours of employees and organisations that have a negative impact on the productivity of an organisation; behavioural health care episodes and the cost of treating these episodes; and lifestyle behaviours that lead to preventable healthcare conditions and the cost of treating these conditions.
Its focus lies on how behaviour affects workplaces and organisations along with how to appropriately mitigate negative effects arising from inappropriate behaviour.
Negative behaviour within an organisation can lead individuals to feel uncomfortable as well as stressed. This can often result in people feeling demotivated to work or feeling that the environment is not appropriate for the work context. Over time, these negative practises and attitudes tend to spread throughout the organisation, affecting all individuals.
When a significant number of individuals within the organisation start to feel that they are either out of place or offended then there is a high possibility that these individuals may either leave the organisation, revolt against such practises, or completely lose motivation. Whatever scenario plays itself out, there are likely to be major losses in productivity. Put simplistically, negative behaviour affects the organisational culture. This is hazardous because organisations rely on their culture for a variety of reasons, with their culture often being interconnected with the very structure of the organisation itself. If the culture of an organisation begins to fall apart, the structure of the organisation will very likely follow as well.