Governing WHS psychosocial risks: A primer for boards

Australian organisations have made significant strides in prioritising physical work health and safety. It’s important for boards to bring the same level of focus and oversight to psychosocial risks.

Directors have individual legal obligations under Work Health and Safety (WHS) laws to exercise due diligence in relation to their organisation’s compliance. This includes taking reasonable steps to understand psychosocial risks in the workplace and confirming that appropriate resources and processes are in place to manage them.  

Psychosocial risks can be challenging to identify and address. Unlike physical hazards, they are often less visible and may only become apparent after harm has occurred. They also vary widely between industries, organisations, and roles – meaning there is no one-size-fits-all approach to managing them. 

This primer, developed by the AICD and King & Wood Mallesons, supports directors strengthen their oversight of psychosocial risks. It outlines key areas, including understanding psychosocial hazards; the legal and regulatory landscape; the board’s governance role; and director questions. 

Key points

• WHS laws in Australia require directors to take a proactive role in managing psychosocial hazards – not just physical ones.  

• Psychosocial hazards can stem from job design or management practices, the work environment, and workplace behaviours or relationships.  

• Red flags for directors include regulatory action, the absence of a robust safety governance plan, lack of board reporting on psychosocial risks, failure to act on identified risks, and insufficient training on psychological health and safety. 

• As with physical WHS risks, managing psychosocial risks is focused on prevention – not on treating existing mental health conditions, but on identifying and addressing the underlying workplace factors that may contribute to harm.  

Regulators in all Australian jurisdictions are dedicating additional resources to carrying out compliance and enforcement activities in connection with workplace psychosocial hazards.  

Access the resource here.