Abstract
Risk managers need to understand more than the psychology impacting individual behavior. They also need to understand how these issues play out in organizations. Therefore, risk managers need to have an understanding of how insights from social psychology inform us about group behavior. In particular, risk managers need to understand the degree to which psychological pitfalls are mitigated or amplified by committees.
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Notes
Richard A. Brealey, Stewart C. Myers, and Franklin Allen (2007), Principles of Corporate Finance (Burr Ridge: McGraw-Hill Irwin).
See Joe Herbert and John Coates (2008), “Endogenous Steroids and Financial Risk Taking on a London Trading Floor,” PNAS 105 (16): 6167–6172.
Daniel Kahneman (2011), Thinking, Fast and Slow (New York: Farrar, Straus, and Giroux).
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© 2016 Hersh Shefrin
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Shefrin, H. (2016). How Psychology Brought Down MF Global. In: Behavioral Risk Management. Palgrave Macmillan, New York. https://doi.org/10.1057/9781137445629_16
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DOI: https://doi.org/10.1057/9781137445629_16
Publisher Name: Palgrave Macmillan, New York
Print ISBN: 978-1-349-55420-1
Online ISBN: 978-1-137-44562-9
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