Newsmakers

Hersh Shefrin, Mario L. Belotti Professor of Finance, was quoted in an article by Risk Management focusing on how businesses need to develop systems to better understand the psychology behind risk. Shefrin brings forth the idea that businesses must improve their understanding of risk management and discusses the significant role that psychology holds in regards to risk management in the business environment.

An excerpt from the article:

According to Shefrin, psychology has likely played a larger role in crisis response than many people realize. “Every single risk management disaster in the last 15 years, including financial disasters, has had psychological issues at the root,” he said. “Whether it’s an earthquake, natural catastrophe or a financial disaster, it is often compounded by our psychological imperfections.”

Learn more about Professor Hersh Shefrin »