The New Behavioral Science of Risk Taking in Business
by Michele Wucker, Strategy+Business
Understanding people’s tolerance for and approach to risk can help companies build teams and improve decision making.
There’s something of a bull market in understanding attitudes toward risk. Last decade’s financial crisis spawned a slew of platforms — Riskalyze, FinaMetrica, Tolerisk, and a rapidly growing list of competitors — that seek to understand people’s tolerance for financial risk. It is now common for financial advisors to ask clients a set of questions about how much money they’re willing to lose in exchange for the chance to make more. The advisors then use the answers to assign clients a risk number and match them to appropriate portfolios. The practice represents an important step in the evolution of thinking about risk."
Want us to share your news or article? Contact Courtney Smyser at [email protected]