Authors:
- Shefrin is a big name scholar and practitioner in behavioral finance with an international audience. His prior books continue to sell through well over the years, and he will use his executive training courses to promote and market this current work
- Ever since the eruption of the global financial crisis, risk managers have become aware of the role played by human psychology in financial decisions that preceded the crisis. This is the first book for practitioners looking to leverage behavioral concepts to improve judgments and decision involving risk within organizations
- Offers a clear presentation of key psychological concepts and real world applications to illustrate how they can be applied in practice
Buy it now
Buying options
Tax calculation will be finalised at checkout
Other ways to access
This is a preview of subscription content, log in via an institution to check for access.
Table of contents (21 chapters)
-
Front Matter
-
Part II
-
Front Matter
-
About this book
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. In Behavioral 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.
Reviews
“Behavioral Risk Management is a thought-provoking book that advances the behavioral finance literature by moving beyond the historical focus on asset pricing to examine operational risk within a number of institutions. The book effectively demonstrates that investment managers need to understand not only the quantitative tools, such as conditional value at risk, but also the psychology of risk management.” (Mark K. Bhasin, Financial Analysts Journal, Vol. 12 (1), 2017)
"Hersh is a pioneer in Behavioral Risk Management who is always looking at the application of the concepts he teaches. He has predicted the BP Oil Spill(s) long before happening, and has the capacity to understand very complex businesses and offer very pragmatic solutions. Learn how to prevent Operational Risk in Finance and the events that shaped Risk Culture." —Alexandru Voicu, Portfolio Manager, Certinvest'Behavioral Risk Management is an accessible, insightful, and necessary work for anyone who is involved in the pursuit of value creation. Hersh Shefrin has managed to combine an examination of the research into the psychology of risk with specific applications and examples of its impact on real life situations. Like Luca Celati's The Dark Side of Risk Management, Shefrin's work brings important issues to the forefront that are unknown to most risk managers. Knowledge of the influence of psychology on behavior and risk enhances opportunities, while there may be unexpectedperil for those who ignore these insights. This is book is essential reading.' —David R. Koenig, Founding Principal, The Governance Fund
'This book provides a complete understanding of why behavioral components have to be included in risk management. Either from a micro, a macro, or a regulation perspective, quants and rationality have revealed their limits. Drawing from the major disasters, Shefrin provides a thorough analysis of the psychological components which led to such outcomes. Without any overconfidence bias, this is a must-read for anyone involved in operational risk management.' —Catherine Lubochinsky, Professor, University of Paris II
'Behavioral finance offers many useful lessons for risk managers that have not been fully embraced by the profession yet. This book provides a comprehensive and accessible presentation of behavioral finance and then highlights these concepts in multiple case studies provided from the risk management failures of the recent past. Risk managers can use this book to extend their toolkits beyond the typical quantitative measures of risk by considering the impact, and shortcomings, of human psychology.' —Chris Donohue, Global Association of Risk Professionals
"Professor Shefrin demonstrates how fundamental psychological factors influence risk-taking decisions and affect investment returns, corporate performance, and societal wealth creation. Shefrin's findings are informed by a dedicated research effort stretching over a decade. Showing the importance of subtle human traits, this seminal book is a must for students and scholars in finance, economics, and management as well as executives, policy makers, and regulators." —Torben Juul Andersen, Professor of International Management and Strategy, Copenhagen Business School
"This book explains the key role of psychology in risk management. All risk managers and students of risk management will find the book's insights indispensable." —John Hull, Maple Financial Professor of Derivatives and Risk Management, Joseph L. Rotman School of Management, University of Toronto
About the author
Bibliographic Information
Book Title: Behavioral Risk Management
Book Subtitle: Managing the Psychology That Drives Decisions and Influences Operational Risk
Authors: Hersh Shefrin
DOI: https://doi.org/10.1057/9781137445629
Publisher: Palgrave Macmillan New York
eBook Packages: Economics and Finance, Economics and Finance (R0)
Copyright Information: The Editor(s) (if applicable) and The Author(s) 2016
Hardcover ISBN: 978-1-137-44560-5Published: 11 January 2016
eBook ISBN: 978-1-137-44562-9Published: 29 April 2016
Edition Number: 1
Number of Pages: XXI, 518
Number of Illustrations: 71 b/w illustrations
Topics: Risk Management, Banking, Corporate Finance, Corporate Environmental Management, Business Finance, Operations Research/Decision Theory