"Excellent course, providing new insights."
Director,
ABN AMRO Bank
Netherlands


Behavioral Risk Management
Understand the psychology of risk
Overview

CE credits

This program is eligible for 12 CE credit hours as granted by CFA Society VBA Netherlands 

Effective risk management involves a combination of quantitative and qualitative skills. Qualitative skills do not substitute, but instead complement and support quantitative skills. The Behavioral Risk Management course presents a framework for managing risks that relate to human psychology. In this regard, virtually every major risk management failure, if not catastrophe, in recent years has had psychological pitfalls at its root.

If you are responsible for risk management or wish to have a better awareness of risks within your organization, if you interact with risk managers, or if you are a risk manager yourself, then this program will help you better understand the psychology of risk. At its core, the psychology of risk pertains to emotions, framing, personality, and judgmental errors. Through this program, you will acquire a vocabulary and skill set for analyzing the psychological dimension of risk management issues, thereby improving your effectiveness and the efficacy of your organization.


How you will benefit

  • Learn to identify how psychological hard wiring predisposes people to make systematic mistakes in the assessment and taking of risk
  • Be able to assess and describe how risk management culture determines levels of operational risk
  • Measure the reflection of sentiment in pricing and its connection to value and risk
  • Understand how behavioral frameworks can be used to foster a risk management mindset for all professionals within the organization
  • Build a behavioral toolkit through the use of case studies during the program
     

 

 

 

 

Content

Psychological foundations: vocabulary, concepts, and techniques

  • Heuristics
  • Biases
  • Framing effects and reference-point risk preferences
  • Mitigation approach using nudges, fast and frugal techniques

Financial instability, systemic risk, psychological dimension of global financial crisis

  • Financial Instability Hypothesis
  • Systemic risk
  • Global financial crisis, case studies
  • Regulatory heuristics

Risk management in financial firms and regulatory agencies: case studies

  • JPMorgan Chase, OCC
  • MF Global, CFTC/SEC
  • RBS, Fortis, Santander/ABN AMRO, FSA/DNB
  • Madoff, SEC
  • UBS

Risk management in operating firms and regulatory agencies: case studies

  • Fukushima Daiichi, NISA
  • Southwest Airlines, FAA
  • BP, MMS
  • GM, NHTSA
  • Nortel Networks
     
Who should attend

If you are responsible for risk management or wish to have a better awareness of risks within your organization; if you interact with risk managers, or if you are a risk manager yourself, then this program will help you better understand the psychology of risk.


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> Behavioral Finance

Faculty
Hersh Shefrin 

Hersh Shefrin is the Mario L. Belotti Professor of Finance at Santa Clara University. He is one of the pioneers in the behavioral approach to economics and finance. The January 2001 issue of CFO magazine listed him among the academic stars of finance. A 2003 article in the American Economic Review listed him as one of the top fifteen economic theorists to have influenced empirical work. In 2009, his behavioral finance book Beyond Greed and Fear was recognized by J.P. Morgan Chase as one of the top ten books published since 2000. His most recent book, Behavioral Risk Management, was published in 2016. 

>> Read his full biography

 

Accreditation
Dates & fees
19 - 20 September 2019 € 2,500

Program fee includes all study materials, books and software that are required for the program as well as daily luncheons.
Program fee is exempt from VAT for clients located in the Netherlands. For other EU and Non-EU clients, VAT may be due by client and will not be charged by AIF. Fees may be subject to change.
Testimonials

“Up to date, relevant and interesting. Straight forward delivery of complex topics”
Management Board Member / CFO
Croatia Banka PLC
Croatia

 

“Excellent course, providing new insights.”
Director
ABN AMRO Bank

The Netherlands

 

“I would recommend this program because of the challenging nature and the fact that psychology is relevant to all of us.”
Chief Compliance Officer
Schretlen & Co
The Netherlands

 

“Relevant for application in a risk management function.”
Enterprise Risk Manager
ABN AMRO Bank
The Netherlands

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