Risk Psychology

Risk psychology is the branch of psychology studying perceptions, attitudes, decisions and behaviours towards risk and how humans and animals take risks. The illustration to the right demonstrates how risk psychology is formulated from a series of cause and effect relationships:

Risk psychology shapes the way a person weighs decisions that involve risk.

• Gain vs. Loss
• Cost vs. Benefit
• Threat vs. Opportunity
• Risk vs. Reward
• Short-term vs. Long-term

Often, risk psychology impairs decision-making and causes negative consequences.

• Failure to take any action
• Delays in making decisions
• Reliance on others to make decisions
• Bias regardless of underlying evidence
• Misguided assumptions
• Lack of objectivity
• Inflexibility

We offer value to our clients by providing innovative solutions that help manage risks inherent in risk psychology.