The Dark Side of Risk Management
05 Jan 05

“Written from the trenches of Risk Management … it should prove to be eye openers for most readers.”
Hersh Shefrin,
Mario L. Belotti Professor of Finance, Leavey School of Business, Santa Clara University, author of Beyond Greed and Fear, A Behavioral Approach to Asset Pricing, and Behavioral Corporate Finance.

Over-optimism, stubbornness, inertia.... human behaviour is responsible for about two-thirds of operational losses and is at the root of all the major risk disasters and financial panics of the last 20 years.

As risk management’s responsibility expands beyond their traditional disaster-prevention role, these behavioural aspects can no longer be ignored on the grounds that if you can't measure it you can't manage it. Measuring and managing the elusive human factor - the dark side - of risk is the challenge that Luca Celati takes on in this groundbreaking book.

THE DARK SIDE OF RISK MANAGEMENT, How People Frame Decisions in Financial Markets published by Financial Times Prentice Hall, 10th November 2004..

Endorsed by leading experts and written by a practitioner with years of trading room experience, this book is the first to introduce behavioural finance and psychometric testing insights in the context of Risk Management. For risk managers, senior traders or top managers willing to go the extra mile to understand the real source of many decisions and issues in organisations, this book will open the door to a new kind of consciousness and awareness.

Placing the emphasis on practical applications in the daily risk and trading reality, The Dark Side of Risk Management will show why risk management has to move beyond purely analytical and logical process to include the impact of psychological issues on risk decisions.

THE DARK SIDE OF RISK MANAGEMENT How People Frame Decisions in Financial Markets Author: Luca Celati Pub Date: 10 November Price: £60.00 Publisher: Financial Times Prentice Hall ISBN: 0273663461 Buy online from www.pearson-books.com before 5th Febuary 2005 to save 10% on the RRP of £60.00. Click here for further information or to purchase

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