Linking risk management with mental health: creating a culture of care and resilience

All businesses operate under some degree of risk, be it strategic, operational, technological or reputational. To address this uncertainty and the toll it can take on associates, companies need a robust risk management framework that also incorporates mental health and wellness.  Associate well-being can have a sizable impact on business performance and should be treated as another potential risk. By integrating mental health and wellness into an effective risk management framework, companies can improve mental health outcomes for associates and mitigate serious business risks.  

Risk management refers to the systematic process of identifying, assessing and mitigating threats or uncertainties that can negatively affect an organization. This involves analyzing a risk’s likelihood and impact, developing strategies to minimize harm and monitoring effectiveness. The fundamentals of risk management can be applied to nearly any potential risk factor, including associate mental health and well-being.  

While employers previously treated associate mental health as something separate from workplace concerns, the COVID-19 pandemic highlighted just how much of an impact it can have on a company’s bottom line. Globally, an estimated 12 billion working days are lost every year to depression and anxiety, with a cost of $1 trillion per year in lost productivity. Additionally, burnout is widespread, where 88% of U.S. workers say they experience burnout, while one in five claim they think about quitting their jobs daily. Ultimately, the success of a business is reliant on the collective, positive mental health of its associates, necessitating its integration into risk management practices. 

To effectively address mental health risks, organizations must first assess their risk culture. Strong risk cultures focus on understanding assumptions around risks and encourage actions that improve risk attitudes.  To foster a workplace environment that prioritizes mental health and well-being, companies and managers must recognize that associate stress, burnout and attrition are avoidable by making meaningful changes to their organization’s risk culture and management practices.  

To implement mental health and well-being programs into a risk management framework, leaders should work with associates to identify which services and support they most need. They should also develop policies that promote work-life balance and reduce stress. As an example, Bread Financial® offers Spring Health, a comprehensive and confidential mental wellness benefit that includes telemedicine, counseling and personalized support to associates and their families. We also provide an annual wellness reimbursement that can be used to cover various physical and mental health expenses.  

Of course, ensuring associates’ health and well-being isn’t just about healthcare: companies must also develop policies that promote a healthy work-life balance and reduce stress. For instance, Bread Financial considers work at home a viable work option for many associates that, when properly implemented and administered, benefits both the company and associates. Our policies allow associates to choose where they work within set guardrails, which in turn provides the flexibility to manage what can feel like competing work and life demands.  

Most importantly, if leaders want to support associate well-being, they should aim to align their risk management strategies with the company’s values and culture. Not only can company values promote positive mental health practices, but a strong connection to their organization’s values can bolster associate morale and reduce stress.  

Effective risk management extends beyond financial and operational concerns, with associates' well-being as a fundamental aspect of organizational success. When associates are less stressed and have support for their mental health and well-being, they are more likely to be motivated, engaged and fully invested in their work. Business leaders should re-evaluate their current risk management practices and consider how they can make mental health a top priority within their wider risk culture.