Behavioral Risk Management

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Understanding the psychological aspects of risk management is essential for effective decision-making. The book identifies critical do's and don'ts that can help individuals and organizations create frameworks for sound judgments. It highlights that those lacking this psychological insight are more likely to encounter failures in risk management, as evidenced by major disasters like the 2008 Lehman Brothers bankruptcy and the Fukushima disaster. By recognizing and addressing psychological pitfalls, one can significantly improve risk management practices.