Behavioral risk management

Author

• Shefrin, Hersh

Additional Author(s)

-

Publisher

Hampshire: Palgrave Macmillan, 2016

Language

English

ISBN

9781137445605

Series

Subject(s)

• DECISION MAKING-PSYCHOLOGICAL ASPECTS
• RISK MANAGEMENT
• RISK MANAGEMENT-PSYCHOLOGICAL ASPECTS
• RISK PERCEPTION

Notes

. Bibliography: p. 469-508. Index: p. 509-518

Abstract

The psychological dimension of managing risk is of crucial importance, and its study has led to the identification of specific do's and don'ts. Those with an understanding of the psychology underlying risk and the skills to recognize its manifestation in practice, have the opportunity to develop frameworks that embody the do's and don'ts, thereby producing sound judgments and good decisions. Those lacking the understanding and the skills are destined to be more hit and miss in their approach to risk management, doing the don'ts and not doing the do's. Virtually every major risk management catastrophe in the last fifteen years has psychological pitfalls at its root. The list of catastrophes includes the 2008 bankruptcy of Lehman Brothers and subsequent global financial crisis, the 2010 explosion at BP's Macondo well in the Gulf of Mexico and the 2011 nuclear meltdown at the Fukushima Daiichi power plant.
A critical lesson from psychological studies for those involved in risk management is that people's judgments and decisions about risk vary with type of circumstance. InBehavioral Risk Management readers will learn that there are specific actions that organizations can undertake to incorporate understanding, recognition, and behavioral interventions into the practice of risk management. There are many examples throughout the book that illustrate doing the don'ts. The chapters in the first part of the book introduce the main ideas, and the chapters in the latter part provide insight into how to apply those ideas to the practical world in which risk managers operate.

Physical Dimension

Number of Page(s)

xxii, 518 p.

Dimension

24 cm.

Other Desc.

-

Summary / Review / Table of Content

Introduction
Shefrin, Hersh
Pages 1-15

SP/A Theory’s Focus on Three Key Emotions
Shefrin, Hersh
Pages 19-35

Prospect Theory’s Focus on Gains, Losses, and Framing
Shefrin, Hersh
Pages 37-52

Biases and Risk
Shefrin, Hersh
Pages 53-69

Personality and Risk
Shefrin, Hersh
Pages 71-82

Process, Pitfalls, and Culture
Shefrin, Hersh
Pages 85-103

Minsky, the Financial Instability Hypothesis, and Risk Management
Shefrin, Hersh
Pages 105-124

Aspirational Pitfalls at UBS and Merrill Lynch
Shefrin, Hersh
Pages 125-139

Cheating Issues at S&P and Moody’s
Shefrin, Hersh
Pages 141-155

Groupthink at Fannie, Freddie, and AIG
Shefrin, Hersh
Pages 157-171

The Winner’s Curse Strikes at RBS, Fortis, and ABN AMRO
Shefrin, Hersh
Pages 173-189

Behavioral Dimension of Systemic Risk
Shefrin, Hersh
Pages 191-209

Financial Regulation and Psychology
Shefrin, Hersh
Pages 211-228

Risk of Fraud, Madoff, and the SEC
Shefrin, Hersh
Pages 229-247

Risk, Return, and Individual Stocks
Shefrin, Hersh
Pages 249-266

How Psychology Brought Down MF Global
Shefrin, Hersh
Pages 267-279

JPMorgan’s Whale of a Risk Management Failure
Shefrin, Hersh
Pages 281-297

Risk Management Profiles: Con Ed, BP, and MMS
Shefrin, Hersh
Pages 299-317

Information Sharing Failures at Southwest Airlines, General Motors, and the Agencies That Regulate Them
Shefrin, Hersh
Pages 319-334

Conclusion
Shefrin, Hersh
Pages 335-345

Erratum to: Behavioral Risk Management
Shefrin, Hersh
Pages E1-E9

Exemplar(s)

#	Accession No.	Call Number	Location	Status
1.	01248/17	658.4903019 She B	Library - 7th Floor	Available