Psychosocial Risk Management
Protecting people and performance
Psychosocial risk has specific provisions in WHS law across Australia. This makes it a critical responsibility for boards, executives, and leaders. It is no longer optional or a nice-to-have, and ‘wellness washing’ won’t cut it!
At fr&nk Capability Leaders, we help organisations across Australia and internationally understand workplace psychosocial risks. Our solutions are scalable and sustainable, addressing the risks in a practical way. We also help organisations demonstrate that their WHS duties are being met and ensure legal compliance.
What is psychosocial risk?
Psychosocial risk is a risk to a worker's health or safety from psychosocial hazards. These types of hazards arise from the way work is designed, organised, and managed, which can harm a worker. They can also arise from the social interactions and behaviours of people in the workplace. When exposure is frequent, prolonged, or severe, it can impact workers' mental and physical health.
Examples of psychosocial hazards include:
Excessive or insufficient job demands.
Low role clarity or constant organisational change without support.
Bullying, harassment, or poor workplace relationships.
Remote or isolated work.
Exposure to traumatic events.
Lack of consultation and participation in decisions.
These hazards relate to people and how they work, but they are not just HR issues. They create a risk to health and safety that needs to be managed with the same attention we give to physical hazards.
Visual representation of psychosocial hazards
What is the impact if risks are not managed?
Unmanaged psychosocial hazards can:
Lead to psychological injury, stress claims, and rising workers compensation costs.
Increase absenteeism, turnover, and disengagement.
Damage team cohesion and productivity.
Undermine organisational culture and reputation.
Trigger enforcement action, including investigations or prosecutions by regulators where duties are not being met.
Example case story based on factual events:
Jason was a finance manager who was given responsibility for both his regular duties and a major project at the same time. The constant long hours, cancelled leave, and lack of managerial support left him exhausted and eventually suffering from anxiety and depression. The impact on Jason meant Sarah found herself working alone in the team for long periods, also carrying an excessive workload without adequate rest or support. Both workers ultimately reached breaking point sustaining psychological harm.
Well-managed psychosocial risks can:
Improve retention and engagement.
Build healthier, more resilient teams.
Strengthen trust and performance.
Provide boards with confidence that due diligence obligations are being met and regulator expectations addressed.
How fr&nk can help
We specialise in building capability, not just writing procedures. Our approach covers:
Systems. Policies, procedures, and assurance processes that are clear, usable, and defensible.
Customs. Mapping the real ways work happens and shaping habits and behaviours to reduce harm.
People. Developing leaders and teams who can design good work, intervene early, and respond effectively.
We deliver leadership training using our LEAD-R model - Learning, Engaging, Accountability, Discipline, and Response-ability, so leaders have the capability to manage psychosocial risks in their teams and workplaces.
Looking for a software solution? We collaborate with our partner MiBo, to bring you and evidence-based technology solution to psychosocial risk management. MiBo’s platform helps organisations measure culture, track progress, and capture the lived experience of work. This gives leaders a reliable picture of psychosocial risks and strengths, and allows us to target improvements where they matter most.
What we deliver
Psychosocial risk assessments tailored to your company size and industry sector.
SMART work assessments. Using the SMART work assessment method, we can review how work is managed to balance demands, clarify roles, and improve resourcing to protect wellbeing while supporting performance.
Leadership capability programs that give managers confidence in prevention and response.
MiBo implementation support to ensure you have the insights and dashboards that track psychosocial risk and give leaders practical data for decisions and due diligence.
Prevention Plans to encourage respectful behaviours and issue resolution pathways that are clear, fair, and trauma-informed.
Monitoring and assurance systems that generate board-ready evidence and demonstrate WHS duties are being met.
Integrated solutions that align psychosocial, safety management, and occupational hygiene.
Evidence of WHS duties being met
Boards and executives (officers) must show that they have taken all reasonable steps to exercise due diligence to ensure that psychosocial risk is being managed. Without clear evidence to demonstrate this, officers may be exposed to regulatory investigation and possible prosecution.
Our programs provide defensible evidence, including:
Documented risk assessments and action plans.
Records of consultation with workers and leaders.
Training and leadership development evidence.
Monitoring and review data that tracks whether controls are effective.
MiBo dashboards and insights providing real-time visibility of psychosocial risks.
Board and executive reports that connect hazards, controls, and outcomes in clear, practical language.
This creates a line of sight from risk identification through to assurance, giving boards confidence that due diligence obligations are met and regulators clear proof of compliance.
Typical outcomes
Compliance with WHS laws and Codes of Practice.
Clear evidence for board due diligence and regulator expectations.
Reduced complaints, claims, and turnover.
Leaders and supervisors with practical skills to manage risks.
Systems that are scalable and sustainable across functions, sites, or countries.
Why fr&nk
Recognised thought leaders. We contribute to the national and international conversation on psychosocial risk.
Practical and usable. Our tools are designed with the people who use them.
Board-ready assurance. Clear evidence that meets due diligence requirements.
Proven across sectors. Trusted by universities, government, renewable energy, manufacturers, and SMEs.
MiBo partnership. We combine deep consulting expertise with MiBo’s technology to deliver real-time insights, measurable progress, and sustainable change.
Ready to act?
Psychosocial risk is now a defined health and safety duty. The question is whether you address it only when a regulator calls, or whether you take the opportunity to improve work design, strengthen performance, and protect your people.
Book a call today
Let’s discuss your goals and challenges and design a practical next step.