A Behavioral and Cognitive Approach to Enterprise Risk Management

A Behavioral and Cognitive Approach to Enterprise Risk Management underscores the vital alignment of behavioral economics with enterprise risk management (ERM), challenging traditional models predicated solely on rational decision-making. The text assumes minimal familiarity with behavioral economics and neuroscience, and some familiarity with ERM concepts and frameworks. Chapters 2 through 5 lay the groundwork for understanding behavioral forces and the cognitive biases that results from them in the context of making decisions under uncertainty. Chapters 6 and 7 detail techniques for mitigating bias and leveraging bias to produce better decisions. Chapters 8 through 12 discuss behavioral issues that arise during the various stages of ERM. Chapters 13 and 14 cover special topics in decision-making regarding groupthink and capital budgeting. A Behavioral and Cognitive Approach to Enterprise Risk Management encourages a deep comprehension of cognitive biases and heuristics. It is well-suited for graduate-level courses exploring enterprise risk management and business decision-making.