Applying Employee Psychology to Address Changes in Canadian Local Business: Optimizing Risk Management Strategies

Abstract

Amid increasing economic uncertainty, Canadian businesses are facing significant challenges, including labor shortages, inflationary pressures, and supply chain disruptions. This study explores the intersection of employee psychology and enterprise risk management, demonstrating how psychological principles can optimize risk management systems in a complex economic environment. By integrating theories such as incentive theory, expectancy theory, and the framing effects of behavioral economics, the study proposes strategies centered on psychological motivation and system design. Case studies and data analysis illustrate how Canadian enterprises can enhance management efficiency and competitiveness through these strategies while envisioning future opportunities to incorporate psychology into business management.