risk appetite

The economic problem of organizational risk appetite

Door Arie de Wild In our current era of major global challenges and worldwide crises the human race is contin- uously searching for solutions to the fundamental economic problem of how to determine which aims should be pursued and how limited resources ought to be allocated. Economics as the science that studies “human behavior as a relationship between ends and […]

Nassim Taleb: ‘The Black Swan’ author in praise of the risk-takers

The writer and former options trader Nassim Taleb talks to Margareta Pagano about banking, Babylon and birdsong By The Independent Nassim Nicholas Taleb has a dream. It’s this: he wants us to celebrate the restaurant owners, the taxi drivers, the market traders and carpenters and all the other risk-takers who put their skin in the game and who drive the […]

Innovation Risk: How to Make Smarter Decisions

By Robert Carhart Merton for Harvard Business Review New products and services are created to enable people to do tasks better than they previously could, or to do things that they couldn’t before. But innovations also carry risks. Just how risky an innovation proves to be depends in great measure on the choices people make in using it. Ask yourself this: […]

Take too much Risk? Must be the testosterone…

By Maria Konnikova, Big Think Blog When we think testosterone, we think macho. We think male, manly. We probably also think aggressive. And we think that with good reason. Men do traditionally have higher testosterone levels than do women, and higher testosterone has indeed been associated repeatedly with increased risk-taking behavior, especially in social domains (where aggression would fall). That’s […]

The risk management of nothing

Author: Michael Power, London School of Economics and Political Science Source: Accounting, Organizations and Society 34 (2009) 849–855, Elsevier This essay challenges core elements of enterprise risk management (ERM) and suggests that an impoverished conception of ‘risk appetite’ is part of the ‘intellectual failure’ at the heart of the financial crisis. Regulators, senior management and boards must understand risk appetite […]