TITLE
"Risk Management Decision Making: A Choice Shift Perspective,"
Journal of Insurance Issues
and Practices, Power, Mark L., Thomas L. Heflin,
and Wm. Theodore Cummings, 1983, Vol. VI, No. 1: 60-71.
ABSTRACT
The modern-day corporate risk manager's responsibility is the
conservation of assets and income from pure risks. Success in
operation of this functional area by the risk management team
enables management as a whole to maximize shareholder wealth.
Decision making pervades this responsibility with hierarchical
position and efficient communication central to the understanding
and coordination of the risk management department. Factors that
may possibly affect a person's reaction to risk should be well
known to those individuals that are charged with the responsibility
of dealing with corporate pure risk situations.
This paper is a preliminary attempt to synthesize the existing
research concerned with choice shift and applies the theoretical
basis of the phenomenon to the field of risk management. The strategy
of this paper is as follow: First, the literature of the choice
shift phenomenon is reviewed; second, risk management decision
making is discussed; third, the two areas are integrated by hypothesizing
the possible effect group discussion might have on risk management
decision making; fourth, direction of future research and methodology
is presented; and last, conclusion are drawn.
|