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).
[2] 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: Negative behavior (or "discreet emotions") within an organization can lead individuals to feel uncomfortable as well as stressed.
When a large number of individuals within the organization start to feel like they are either out of place or offended then there is a high possibility that these individuals may either leave the organization, revolt against such practices, or completely lose motivation.
Negative behavior does not necessarily entail an individual acting particularly immature or rude.
Various studies have been conducted in order to analyze how various personality types can impact an organization.
People who tend to overreact, create drama or simply fall under stress due to unexpected situations are an example of high levels of neuroticism.
Organizations account for the idea that when they reside in a different country or when they hire employees from different countries there is always a chance of facing different working habits, ethics, along with a number of other aspects by the individuals or society they are operating in.
[4] This can often increase conflict within the organization because what one person sees as either morally correct, or the most effective method, may not be the same as the rest of the group.
It greatly harms the productivity of the group as a whole and can often impact the health conditions of members within the organizations.
[6] In this case, you analyze workers and members in order to try to find negative points that could be potentially harmful.