HomeHR glossaryBehavioral risk management
Behavioral risk management

Behavioral risk management is a proactive approach that focuses on identifying and managing risks associated with human behavior within an organization. It involves analyzing and mitigating potential risks arising from employee actions, decision-making, and interactions that can impact the organization's reputation, compliance, and overall performance. By understanding and addressing behavioral risks, organizations can create a safer and more productive work environment.

A company implements behavioral risk management by conducting regular employee training programs on ethical conduct and professional behavior. They also establish clear policies and procedures to address potential risks such as conflicts of interest, fraud, and harassment. Through ongoing monitoring and assessment, the company aims to mitigate behavioral risks and promote a culture of integrity and accountability.

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