Risk 3.0: Behavioural Finance
Coverage of the 2010 Risk Management Conference.
BY Caroline Cakebread | August 25, 2010
Just being aware of our natural biases puts investors ahead of the game, according to Dr. Damian Handzy, chair and CEO, Investor Analytics. His presentation at the Risk Management Conference was called Risk 3.0 and explored the role of behavioural economics in risk management. By applying science taken from the study of the human brain, Handzy says investors can better manage risk and make better decisions. For example, he notes, individuals tend to choose the default option and are more averse to losses – something that leads to poor risk management. Stay tuned for the full presentation summary.