Publication type: Conference other
Type of review: No review
Title: Financial risk management and its behavioral pitfalls : an introduction
Authors: Posth, Jan-Alexander
et. al: No
Conference details: Financial risk management and its behavioral pitfalls : an introduction, Shanghai, China, 17 July 2019
Issue Date: 2019
Language: English
Subject (DDC): 332.6: Investment
658.1: Organization and finance
Abstract: Tens of thousands of years of evolution have made man an excellent risk manager. Unfortunately, mankind’s genetically encoded risk management fails in finance – and most spectacularly so. In fact, it turns out that man is very able to manage intuitively most everyday risks – and actually does so on a daily basis – while he is not prepared at all to handle financial risks. The reason for this is our behavioral conditioning which is on a fundamental level at odds with the statistical implications of risk in finance. Behavioral Finance addresses this very basic disconnect between mankind’s genomic imprinting and financial risk management, illustrating possible solutions to avoid the pitfalls associated with it. In this seminar, we will introduce risk in general and contrast it to risk in finance. For both “kinds” of risk, we will outline how man manages them. Finally, we will discuss the behavioral biases most important in finance and understand their origin as well as ways to overcome them.
Fulltext version: Published version
License (according to publishing contract): Licence according to publishing contract
Departement: School of Management and Law
Organisational Unit: Institute of Wealth & Asset Management (IWA)
Appears in collections:Publikationen School of Management and Law

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