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Effective risk management involves many factors. Identifying, evaluating, mitigating risks, and then communicating this information to appropriate parties, are each well-known and highly recommended activities in the process. Risk management has always entailed a significant analytical component in many elements of the process, as it should.
What I believe has not been sufficiently appreciated is that the quality of the decisions people make is the most powerful determinant of success or failure of a risk management process. Further, there is a growing body of research that has shown that decision making is flawed, and often times biased in many ways, leading to ineffective and many times damaging decisions for organizations of all kinds.
Better Behavior + Better Decisions = Less Risk examines the critical, and heretofore largely unexplored, role of understanding the human behaviors and decision-making processes involved in the art and science of risk management, and provides many illuminating examples of how organizations can make more effective decisions about addressing the risks they face.
Each chapter concludes with a Self Appraisal section, where the reader can assess how his or her organization makes risk management decisions of all types, and how their organizations can make more effective decisions that increase the likelihood of their success.
