Risk of Costs in Organisations

In complex organisations, the true cost of risk is often hidden.
Two patterns are especially critical:
(1) when conflicts are not addressed through qualified mediation,
and (2) when investments in expertise and decision-making are avoided or misallocated.
The studies below illustrate how unresolved conflict and mismanaged investment decisions
generate massive economic damage – far beyond the cost of engaging high-level professionals.

Selected Studies on the Cost of Conflict and Mismanaged Investment

• The Cost of Workplace Conflict – Workplace Peace Institute (USA)
  
  https://www.workplacepeaceinstitute.com/post/the-cost-of-workplace-conflict
  
  This analysis estimates that employees in the United States spend an average of
  2.8 hours per week dealing with conflict, amounting to roughly
  US$359 billion in paid working hours lost annually.
• The Cost of Conflict – Mediation Training Institute (Whitepaper)
  

  Klicke, um auf cost-of-conflict-whitepaper-.pdf zuzugreifen

  
  This whitepaper outlines how poorly managed conflict erodes productivity,
  increases staff turnover, and undermines decision quality – demonstrating that
  structured conflict resolution and mediation are economic necessities, not luxuries.

• The Hidden Costs in the Billions – ACAS/UK Data (via Consensus Solutions)
  

  The hidden costs in the billions: How conflicts in the workplace are a burden on companies – and what can be done about them

  
  
  Drawing on ACAS research, this article reports annual workplace conflict costs
  of approximately £28.5 billion in the UK alone, including absence,
  presenteeism, staff exits and formal procedures.

• How Sunk Costs Affect Firms’ Investment Decisions – Wharton School
  

  How Sunk Costs Affect Firms’ Investment Decisions

  
  
  This research shows how firms continue to invest in failing projects due to
  sunk-cost bias, leading to systematic misallocation of capital and significant
  long-term performance losses.

• Sunk Cost Fallacy – Concept Overview (Wall Street Prep)
  
  https://www.wallstreetprep.com/knowledge/sunk-cost-fallacy/
  
  A clear explanation of the sunk cost fallacy and its impact on corporate
  decision-making, illustrating why organisations often avoid corrective action
  and thereby amplify economic damage.
• Workplace Conflict Statistics – Pollack Peacebuilding Systems
  

  85 Workplace Conflict Statistics to Know in 2025

  
  
  This overview compiles data on litigation costs, employee turnover,
  absenteeism and lost productivity, quantifying how unresolved workplace conflict
  directly translates into financial loss.

• The Cost of Unresolved Conflict – Global Mindful Solutions
  

  The Cost of Unresolved Workplace Conflict

  
  
  A recent summary that highlights the financial impact of unresolved conflicts
  in organisations, including estimates of multi-million dollar annual losses
  through absenteeism, disengagement and team breakdowns.

Taken together, these studies demonstrate a consistent pattern:
avoiding or underfunding qualified mediation and high-level conflict expertise
does not save money – it multiplies risk and long-term costs.
Investing in competent mediation and systemic risk literacy is therefore
not only a human or ethical choice, but an economic imperative.