The collapse of major corporations during the global financial crisis, major accidents, and strategic mistakes resulting from mismanagement, have highlighted the crucial role that bad decision making has in creating disasters. People are at the core of corporate success and failure. Researchers in behavioral psychology have discovered that individual persons and groups are not good at making decisions as they fall prey to human biases, giving rise to the term "people risk."Â
Risk management experts Keith Blacker and Patrick McConnell provide a business-friendly introduction to behavioral psychology, explaining how biases, illusions, and conflicts of interest can lead board members, managers, and employees to make potentially disastrous decisions. Using case studies and examples, the authors demonstrate how crucial people risk management is and how ineffective risk management can create crises. They also offer practical tips and tools for changing the culture and structure of organizations to better align people risks with corporate values and provide advice on managing the roles and responsibilities of those directly involved in overseeing risk and people management.