Why Managers and Companies Take Risks

The book answers a simple question: when managers and companies face a decision with two outcomes that are safe and risky, what leads them to choose the risky alternative? The answer starts with a detailed review of the theory behind risk and decision making by managers. The book then gathers real-w...

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Bibliographic Details
Main Author: Coleman, Les
Format: eBook
Language:English
Published: Heidelberg Physica 2006, 2006
Edition:1st ed. 2006
Series:Contributions to Management Science
Subjects:
Online Access:
Collection: Springer eBooks 2005- - Collection details see MPG.ReNa
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505 0 |a Theory of Risk and Decision Making in Management -- Behavioural Evidence on Risk and Decision Making -- Real-World Decision Making Under Risk -- Risk-Taking and Organisation Performance -- Published Models of Decision Making Under Risk -- Why Managers Take Risks -- How Companies Control Risks -- Summary and Discussion -- Risk Budget Theory -- Conclusions 
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653 |a Financial Economics 
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520 |a The book answers a simple question: when managers and companies face a decision with two outcomes that are safe and risky, what leads them to choose the risky alternative? The answer starts with a detailed review of the theory behind risk and decision making by managers. The book then gathers real-world evidence using two surveys of senior managers and directors to analyse why they take risks, and how companies control risks. Integrating theory and evidence the book develops a model of risk taking that draws from academic thinking across multiple disciplines and the actual practice of experienced managers. The last section of the book discusses how managers can apply its findings to dialling up the required level of risk inside their firm