As operational resilience becomes both a regulatory mandate and strategic priority, financial institutions are starting to recognise that resilience extends beyond systems and processes, with a clear focus on people. Human and cultural fragility can transform minor disruptions into systemic failures, undermining even the most sophisticated technical safeguards.
When stress, poor communication, and mental health challenges go unaddressed, they erode trust.
According to the WTW 2025 Directors and Officers Survey, employee health and safety risks remain the foremost concern for senior leaders, with 80% rating them as very or extremely important. Notably, 43% cited physical health and safety as their top priority, while 28% identified the impact of work on mental health and wellbeing. This aligns with the Health and Safety Executive’s (HSE) renewed emphasis on workplace stress and psychological safety.
Under FCA and PRA operational resilience regulations and other regulatory bodies around the world, firms must map all resources supporting Important Business Services, including all relevant people.
The human factor in operational resilience
Consider a scenario in which an already overstretched IT operations team overlooks an early warning sign of a cyberattack. Under mounting pressure, the same team struggles to communicate the incident clearly to internal and external stakeholders. In such moments, when precision, judgement, and responsiveness are most critical, the strain can lead to errors, delayed decisions, and compromised recovery efforts.
These vulnerabilities are rooted in human and cultural resilience. When stress, poor communication, and mental health challenges go unaddressed, they erode trust, hinder recovery, and expose organisations to regulatory scrutiny.
Case study: Embedding psychological safety into operational resilience
WTW recently collaborated with a major financial institution to integrate psychological health and safety into its operational resilience strategy. In response to rising stress-related absences and tragic incidents of suicide, the organisation secured insurer funding for two targeted initiatives: a Psychosocial Risk Insight Review and Mental Health First Aid (MHFA) training.
Psychosocial risk insight review
This review sought to elevate psychological wellbeing to parity with physical safety. Through stakeholder interviews, policy analysis, and data review, WTW identified strengths and gaps in the organisation’s approach. Recommendations, aligned with ISO 45003, included:
- Treating stress as a strategic risk
- Embedding psychosocial risk management into existing frameworks
- Enhancing leadership accountability and manager competence
- Monitoring working hours, wellbeing data, and employee sentiment
- Promoting inclusive communication and social connection
The review provided a strategic roadmap to embed psychological safety, reduce risk exposure, and foster a resilient workplace culture.
Mental Health First Aid (MHFA) Training
In line with updated HSE guidance, 16 employees from safety, people, and risk teams completed MHFA training. Participants gained the skills to:
- Identify signs of mental ill health
- Provide initial support and reassurance
- Direct colleagues to appropriate resources
- Encourage open dialogue and reduce stigma
Feedback highlighted the training’s relevance and impact, laying the foundation for a broader MHFA programme. This initiative supports FCA expectations under the SM&CR, reinforcing healthy culture and senior accountability.
A framework for building resilience from within
Related content
At WTW, we help financial institutions embed human and cultural resilience into their operational risk frameworks. Our integrated approach draws on expertise across Risk Management, Financial Institutions, and Wellbeing to deliver a comprehensive, people-first strategy. This framework includes:
Conclusion
Operational resilience is no longer solely a technical endeavour; it is a human imperative. By investing in the wellbeing, communication, and culture of their workforce, financial institutions can transform vulnerability into strength, compliance into leadership, and disruption into opportunity.
At WTW, we help organisations embed human and cultural resilience into their operational risk frameworks strategically, sustainably, and in alignment with regulatory expectations.
Let’s build resilience from within
Contact us to explore how we can support your journey toward a psychologically safe and operationally robust future.
Authors
At WTW, we help financial institutions embed human and cultural resilience into their operational risk frameworks.