Behavioral Risk Management
Risk management refers to all of the tools that decision‐makers have to adjust to risk. It includes obvious tools such as portfolio management, financial derivatives and the purchase of insurance. But it also includes the operational strategies of “self‐protection” and “self‐insurance” that allow the decision‐maker to change the lotteries they face. It includes informal and formal risk sharing arrangements, and their implications for contracting. It includes the interaction of risks in one domain with risks from other domains (“background risk” and multiattribute risks). And it includes ways in which decision‐makers form subjective beliefs about risks, and manage risks that might occur far in the future. The workshop brings together researchers interested in the manner in which risk management behavior can be understood with theoretical, experimental and econometric methods. Alternative theoretical models are welcome, although analyses that are disconnected from theory are not. Researchers from a variety of disciplines will find this workshop of interest, including economics, finance, risk management, insurance, accounting, and psychology. The workshop will consist of roughly twelve plenary sessions in which speakers have an hour to present.
This workshop complements one on Behavioral Insurance, held in December 2011 at the Munich Risk and Insurance Center. Each workshop will be associated with a separate special symposium section of the Journal of Risk and Insurance, with papers subject to peer review.