Strategic Risk Taking: A Framework for Risk Management

A Roadmap for Understanding Risk

This book is written for three very diverse and different audiences—people who have to manage and make the big decisions on risk (risk managers), analysts and others whose job it is to assess risk (risk assessors), and students of risk who are interested in getting a perspective on how the thinking on risk has evolved over time.

The study of risk has its deepest roots in economics and insurance. For centuries, researchers have attempted to grapple with the basic question of what risk is and how to measure risk aversion. Chapters 1 through 4 represent my attempt to give some historical perspective on how our thinking has evolved over the past few centuries, with a healthy dose of what psychologists have discovered ...