Containing contributions from well-respected international researchers into decision making, the book examines the nature of the psychological processes underlying decision making, and addresses a range of topics including the role of emotions, coping with uncertainty, time pressure, and confidence in decisions. "Decision Making" first places the process approach to decision research in a historical and theoretical context, providing a critical evaluation of its principal research methods. The contributors then consider various influences upon decision making, risk and uncertainty; a final section examines time pressure, the effects of past decisions, and post-decision processes. Decision making is regarded as an interaction between the decision maker, problem and context, and is thus placed in a social environment.

This open access book discusses the most modern approach to auditing complex digital systems and technologies. It combines proven auditing approaches, advanced programming techniques and complex application areas, and covers the latest findings on theory and practice in this rapidly developing field. Especially for those who want to learn more about novel approaches to testing complex information systems and related technologies, such as blockchain and self-learning systems, the book will be a valuable resource. It is aimed at students and practitioners who are interested in contemporary technology and managerial implications.

This book provides an investor-friendly presentation of the premises and applications of the quantitative finance models governing investment in one asset class of publicly traded stocks, specifically real estate investment trusts (REITs). The models provide highly advanced analytics for REIT investment, including: portfolio optimization using both historic and predictive return estimation; model backtesting; a complete spectrum of risk assessment and management tools with an emphasis on early warning systems, risk budgeting, estimating tail risk, and factor analysis; derivative valuation; and incorporating ESG ratings into REIT investment. These quantitative finance models are presented in a unified framework consistent with dynamic asset pricing (rational finance). Given its scope and practical orientation, this book will appeal to investors interested in portfolio optimization and innovative tools for investment risk assessment.

State of the art risk management techniques and practices supplemented with interactive analytics All too often risk management books focus on risk measurement details without taking a broader view. Quantitative Risk Management delivers a synthesis of common sense management together with the cutting-edge tools of modern theory. This book presents a road map for tactical and strategic decision making designed to control risk and capitalize on opportunities. Most provocatively it challenges the conventional wisdom that "risk management" is or ever should be delegated to a separate department. Good managers have always known that managing risk is central to a financial firm and must be the responsibility of anyone who contributes to the profit of the firm. A guide to risk management for financial firms and managers in the post-crisis world, Quantitative Risk Management updates the techniques and tools used to measure and monitor risk. These are often mathematical and specialized, but the ideas are simple. The book starts with how we think about risk and uncertainty, then turns to a practical explanation of how risk is measured in today's complex financial markets. * Covers everything from risk measures, probability, and regulatory issues to portfolio risk analytics and reporting * Includes interactive graphs and computer code for portfolio risk and analytics * Explains why tactical and strategic decisions must be made at every level of the firm and portfolio Providing the models, tools, and techniques firms need to build the best risk management practices, Quantitative Risk Management is an essential volume from an experienced manager and quantitative analyst.

This book explains how investor behavior, from mental accounting to the combustible interplay of hope and fear, affects financial economics. The transformation of portfolio theory begins with the identification of anomalies. Gaps in perception and behavioral departures from rationality spur momentum, irrational exuberance, and speculative bubbles. Behavioral accounting undermines the rational premises of mathematical finance. Assets and portfolios are imbued with "affect." Positive and negative emotions warp investment decisions. Whether hedging against intertemporal changes in their ability to bear risk or climbing a psychological hierarchy of needs, investors arrange their portfolios and financial affairs according to emotions and perceptions. Risk aversion and life-cycle theories of consumption provide possible solutions to the equity premium puzzle, an iconic financial mystery. Prospect theory has questioned the cogency of the efficient capital markets hypothesis. Behavioral portfolio theory arises from a psychological account of security, potential, and aspiration.

The Risk Management Handbook offers readers knowledge of current best practice and cutting-edge insights into new developments within risk management. Risk management is dynamic, with new risks continually being identified and risk techniques being adapted to new challenges. Drawing together leading voices from the major risk management application areas, such as political, supply chain, cybersecurity, ESG and climate change risk, this edited collection showcases best practice in each discipline and provides a comprehensive survey of the field as a whole. This second edition has been updated throughout to reflect the latest developments in the industry. It incorporates content on updated and new standards such as ISO 31000, MOR and ISO 14000. It also offers brand new chapters on ESG risk management, legal risk management, cyber risk management, climate change risk management and financial risk management. Whether you are a risk professional wanting to stay abreast of your field, a student seeking a broad and up-to-date introduction to risk, or a business leader wanting to get to grips with the risks that face your business, this book will provide expert guidance.

'In a time when too many minds seem closed, this is a masterful analysis of what it takes to open them' Adam Grant, author of the bestselling Think Again 'Optimistic, illuminating and even inspiring' Guardian As the world is increasingly polarised, it feels impossible to change the mind of someone with a conflicting view. But this book shows that you could be one conversation away from changing someone's mind about something, maybe a lot of things. Self-delusion expert and psychology nerd David McRaney sets out to discover not just what it takes to influence others, but why we believe in the first place. Along the way he meets a former Westboro Baptist Church member who was deradicalised on Twitter, goes deep canvassing to see how quickly people will surrender their character-defining views, finds a 9/11 Truther who turns his back on it all, and reveals how, within a few years, half a country can go from opposing the 'gay agenda' to happily attending same-sex weddings. Distilling the latest research in psychology and neuroscience, How Minds Change reveals how beliefs take hold, not over hundreds of years, but in less than a generation, in less than a decade, and sometimes in an instant.

This book provides a hands-on introduction to Machine Learning (ML) from a multidisciplinary perspective that does not require a background in data science or computer science. It explains ML using simple language and a straightforward approach guided by real-world examples in areas such as health informatics, information technology, and business analytics. The book will help readers understand the various key algorithms, major software tools, and their applications. Moreover, through examples from the healthcare and business analytics fields, it demonstrates how and when ML can help them make better decisions in their disciplines. The book is chiefly intended for undergraduate and graduate students who are taking an introductory course in machine learning. It will also benefit data analysts and anyone interested in learning ML approaches.

Risk, Uncertainty, and Profit is a groundbreaking work of economic theory, distinguishing between risk, which is by nature measurable and quantifiable, and uncertainty, which can be neither be measured nor quantified. We begin with an analysis of the functions of profit, risk and uncertainty in the economy. Frank H. Knight introduces his work with a discussion on profit and how there are conflicts about its nature between various economic theorists. As the title implies, the author's chief concern is the interplay between making a profit, incurring risk, and determining if there is uncertainty. Risks are different from uncertainty in that they can be measured and protected against. For example a location chosen for a factory or farm may have a measured risk of flooding in a given year. Businesses, insurers and investors alike can be made aware of this, and behave according to the quantified risk.

Writing is essential to learning. One cannot be educated and yet unable to communicate one's ideas in written form. But, learning to write can occur only through a process of cultivation requiring intellectual discipline. As with any set of complex skills, there are fundamentals of writing that must be internalized and then applied using one's thinking. This guide focuses on the most important of those fundamentals.

From natural disasters to cyber-attacks to global pandemics, the modern risk environment is highly complex and challenges our fundamental understanding of risk and crisis management. All senior risk and crisis managers face a similar challenge: maximizing their organization's ability to prepare for a potential high-impact event. Blending practical insights with rigorous research, Strategic Risk and Crisis Management provides a range of realistic solutions for any operational environment. It introduces concepts, frameworks and processes that will allow businesses to not only survive but respond and recover at a time of maximum chaos and confusion. Authored by a recognized global authority on the strategic management of complex events, the book covers the integration of multiple stakeholders and the importance of information exchange and critical decision-making under pressure at strategic, tactical and operational levels. It also includes material on leadership, sense-making, resilience, wicked problems and the challenges of global urban resilience, as well as case studies with detailed analysis of organizational failures and the lessons learned, including COVID-19, the WannaCry attack, the Texas snowstorm, and the Gatwick Airport Drone Incident. Strategic Risk and Crisis Management is an essential read for professionals working in security, risk, crisis management and emergency response. It will also be a valuable text for university students taking modules on security, risk, emergency response and crisis management.

A prominent scholar once noted that lotteries in politics and society-to break vote ties, assign students to schools, draft people into the military, select juries-are "at first thought absurd, and at second thought obvious." Lotteries have been part of politics since the Greek and Roman times, and they are used frequently in American politics today. When there is a two-to-two vote tie for prospective school board members, officials will often resort to flipping a coin (as happened recently in California). And in military drafts, the conventional wisdom is that random selection is far more just than non-lottery drafts. Northerners rioted against the perceived injustice of the non-random draft during the Civil War, and Americans by and large believed that student deferments subverted the justice of the draft during the Vietnam War. Over the years, people who study and practice politics have devoted considerable effort to thinking about the legitimacy of lotteries and whether they are just or not under certain circumstances. Yet they have really only focused on lotteries on a case-by-case basis, and no one has ever developed a substantial and comprehensive political theory of lotteries. In The Luck of the Draw, Peter Stone does just that. Examining the wide range of arguments for and against lotteries, Stone comes to the startling conclusion that lotteries have only one crucial effect relevant to decision-making: they have the "sanitizing effect" of preventing decisions from being made on the basis of reasons. Stone readily admits that this rationale might sound absurd to us, but contends that in many instances it is vital for people to make decisions without any reasoned rationale to compel them. Sometimes, justice can only be carried out through random selection-a fundamental principle of the practice of lottery that Stone comes to call "The Just Lottery Rule." By developing innovative ways for interpreting this pervasive form of political practice, Stone provides us with a foundation for understanding how to best make use of lottery when making political decisions both large and small.

Explores SMS as it is implemented in aviation based on examples from several countries and regions, namely the UK, USA, and Australia. Presents a socio-historical analysis of how SMSs emerged in high-risk industries. Provides insights to explain the existing limitations of SMS. Proposes new avenues to reach beyond the limitations of SMS. Discusses the COVID-19 pandemic within the framework of risk analysis.