Ten Commandments of Risk Leadership

Annette Hofmann is the Academic Director of the Carl H. Lindner III Center for Insurance and Risk Management at the University of Cincinnati. She has authored numerous academic articles on risk management topics.

• 1. Introduction.- 2. Risk and Risk Perception: Why we are not Rational in the Face of Risk.- 3. Expected Utility, Prospect Theory, and the Allais Paradox: Why Reference Points are Important.- 4. Confirmation Bias and Anchoring Effect: Why the First Piece of Information is Key in Negotiations.- 5. Framing and the Ostrich effect: Why our Decisions depend on how Information is presented.- 6. Emotions and Zero Risk Bias: Why we make bad Decisions and overspend on Risk Avoidance.- 7. Endowment Effect and Status-Quo Bias: Why we Stick with Bad Decisions.- 8. Overconfidence and Self-Blindness: Why we think we are better than we actually are.- 9. The Low-Probability Puzzle: Why we insure our Cellphone but Not our Home.- 10. Fairness, Diversity, Groupthink, and Peer Effects: Why Other People matter for our Risky Decisions.- 11. Hindsight Bias: Why We Think we are Good Predictors even though we are not.