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Behavioral risk

  • 6 min read
  • 4 chapters

Related on Lably

Through Productivity, Behavior and Culture

Its focus lies on how behavior affects workplaces and organizations along with how to appropriately mitigate negative effects from inappropriate behavior.

Overview

The management of behavioral risk encompass the study of organization and individual behavior from two primary roots: risk management and organizational behavior. With regard to its risk management roots, this type of management analyzes the effect of practices, cultures and behaviors as well as their associated risk of negative outcomes within an individual (health) and/or an organization (expenses). Alternatively, from its organization studies roots, behavioral risk management explains how organizations and their respective organizational culture, productivity and success of a firm can be associated with the given organization's behavioral aspects.

Behavioral risk is studied to "identify and prevent loss from behavioral risk factors, thereby enhancing organizational health and human capital". Ultimately, the purpose of behavioral risk management is to identify practices and patterns that prove detrimental to organizations. The main applications of this study were identified as:

  • Cost savings from preventable loss
  • Increased productivity and profitability by addressing human capital needs
  • Enhanced strategic alignment with human resources and organizational leadership
  • Measure and demonstrate successes in human capital management

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