Two terms are gaining prominence in our sector: psychosocial risk and psychological safety. Each is important in its own right and plays a key role in shaping a strong workplace culture. So what do they mean and how are they different but related?
Psychosocial risk is a workplace health and safety concept, backed by laws and regulations that require employers to establish clear expectations, policies and practices to minimise psychological harm.
Psychological safety, on the other hand, comes from social psychology research and provides practical behaviours and skills that help create high-functioning teams — such as clarifying roles, setting expectations and fostering open communication and feedback.
Understanding psychosocial risks and hazards
Psychosocial risks, hazards and harms originate from workplace health and safety laws designed to prevent both psychological and physical harm at work. Employers have a proactive duty to identify and mitigate these risks to provide a safe work environment.
SafeWork Australia defines a psychosocial hazard as 'anything that could cause psychological harm (e.g. harm someone’s mental health)'.
SafeWork provides this list of example hazards:
harassment, including sexual and gender-based harassment, and
conflict or poor workplace relationships and interactions (ref https://www.safeworkaustralia.gov.au/safety-topic/managing-health-and-safety/mental-health/psychosocial-hazards).
These risk factors can lead to psychological and/or physical harm, especially if stress is frequent, prolonged, or severe.
Under the law, all Persons Conducting a Business or Undertaking (PCBU) must demonstrate — both to employees and regulators — that they are actively preventing these hazards. Leaders at all levels, from CEOs to department heads and team leads, must be clear about the steps they are taking to reduce risk and ensure a safe workplace. It’s a significant responsibility.
What about Psychological Safety?
While psychological safety is also gaining attention in healthcare, it is distinct from workplace health and safety laws. Rooted in social psychology, it has been studied for decades as a key factor in team effectiveness and performance.
Psychological safety refers to how team members feel about contributing and participating in their team, particularly in situations that involve interpersonal risk—such as sharing an idea, admitting a mistake, asking a question or seeking help.
It is the belief that speaking up won’t lead to punishment, embarrassment or being seen as incompetent, difficult or negative. This is essential in healthcare, where collaborative teamwork relies on open communication—to surface diverse ideas, expertise and experiences, and to flag concerns when things go wrong (or might go wrong).
Psychological safety is not about whether workplace conditions are psychologically safe but rather whether individuals feel safe to speak up and contribute within their teams.
Why psychological safety matters for workplace culture
When we increase psychological safety, we build stronger teams and workplace cultures where issues can be discussed openly, feedback is valued, and people feel heard. Importantly, fostering psychological safety can help mitigate some psychosocial hazards, such as:
Low job control
Lack of role clarity
Bullying and harassment
If we strengthen team relationships and interactions, we lay the foundation for a positive workplace culture — one that actively prevents risk and harm.
We’ll explore this further in Part 2 of this series.
References and further resources
Resources on psychological safety – read AMA Victoria's Leadership Insights
Resources on psychological risk: AMA, WorkSafe and SafeWork:
Psychosocial hazards | Safe Work Australia
The effects of work-related stress | WorkSafe
The goal of these short 'Leadership Insights' is to share key concepts and ideas on effective leadership, along with practical tips for applying them in your own context.
Dr Anna Clark is AMA Victoria's Leadership consultant, coach and educator, currently offering individual coaching for doctors and directing AMA Victoria’s professional development programs in leadership, the Emerging Leader Program and Middle Leader Program.
If you are navigating a leadership challenge and would like to speak with one of our leadership coaches, schedule a leader check-in, an exclusive benefit of membership for AMA Victoria members.
Looking to explore further? Creating Psychological Safety at Work is a targeted professional development course for doctors of all levels and pathways. All programs can be found here.