INTRODUCTION

3.1 This chapter discusses how organisational psychology can provide a valuable perspective in the management of organisational risks. This approach to risk management has been evolving into a unified field over the past 15 years and is now becoming a key perspective in understanding the causes and motivations associated with risk-related behaviour in the workplace. Organisational and human factors are discussed as part of an integrated approach to risk management. Organisational factors are the structures and processes that influence the culture of an organisation and include responsibility frameworks, communication frameworks and job/role design. Human factors describe fundamental human characteristics that need to be managed as part of the risk-management process. This section includes an analysis of the perception of risk, the nature of human error and the motivations that drive individuals to take risks in the workplace.

3.2 It is argued that Human Resources professionals operating at a strategic level are well placed to play an influential role in enabling organisations to manage the risks associated with organisational and human factors because, essentially, risk management is about implementing the procedures and practices that lead to changes in behaviour, attitudes and values. The Human Resource focus on people management in the form of its involvement in learning and development, performance management, establishing systems of rewards and sanctions and the like, provide Human Resources professionals with the necessary expertise. In addition, the cross-functional nature of Human Resources allows it to become an integral and vital part of an integrated...