{"title":"Challenges in Applying Risk Management Concepts in Practice: A Perspective","authors":"Annette Hofmann, N. Scordis","doi":"10.1111/RMIR.12106","DOIUrl":null,"url":null,"abstract":"The existing concepts of risk management face challenges when applied in practice. The perception of risk depends on the observer's cognitive biases and worldview, which nuance risk‐related decisions. How an observer decides also depends on the metric used to quantify risk. While there is extensive literature on how people perceive risk, and on how to price risk in relation to the market, there is little on how to price risk according to how risks interact within the firm. The article concludes with a suggestion (and includes relevant citations) for a way forward.","PeriodicalId":35338,"journal":{"name":"Risk Management and Insurance Review","volume":null,"pages":null},"PeriodicalIF":1.1000,"publicationDate":"2018-09-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"2","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Risk Management and Insurance Review","FirstCategoryId":"1085","ListUrlMain":"https://doi.org/10.1111/RMIR.12106","RegionNum":0,"RegionCategory":null,"ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q3","JCRName":"BUSINESS, FINANCE","Score":null,"Total":0}
引用次数: 2
Abstract
The existing concepts of risk management face challenges when applied in practice. The perception of risk depends on the observer's cognitive biases and worldview, which nuance risk‐related decisions. How an observer decides also depends on the metric used to quantify risk. While there is extensive literature on how people perceive risk, and on how to price risk in relation to the market, there is little on how to price risk according to how risks interact within the firm. The article concludes with a suggestion (and includes relevant citations) for a way forward.
期刊介绍：
Risk Management and Insurance Review publishes respected, accessible, and high-quality applied research, and well-reasoned opinion and discussion in the field of risk and insurance. The Review"s "Feature Articles" section includes original research involving applications and applied techniques. The "Perspectives" section contains articles providing new insights on the research literature, business practice, and public policy. The "Educational Insights" section provides a repository of high-caliber model lectures in risk and insurance, along with articles discussing and evaluating instructional techniques.
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