Managing psychosocial risk under increasing governance regulation

As regulatory expectations continue to evolve, psychological health has become a clear focus for boards. The era of reactive responses has passed. Directors are now expected to take a proactive role in shaping workplace cultures that support psychological safety alongside operational performance.

Recent reforms such as Respect@Work reinforce this direction, placing clear responsibilities on leaders to manage psychosocial risks as part of broader governance duties. This is no longer the sole responsibility of HR. Boards and executives must lead from the front.

Effective psychosocial risk management requires more than policies or compliance checklists. It calls for leadership that builds trust, communicates clearly and fosters a supportive environment. Safeguarding mental wellbeing is not only a legal and moral obligation, it also strengthens organisational resilience and long-term performance.