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Definition: Behavioral Risk Management is a complimentary approach to the reactive, legal, and numbers-oriented compliance and risk management approach taken by various regulators following the 2008 financial crisis. It is a more pro-active, preventive and psychological approach to avoid misconduct by employees (and the company they work in). It involves identifying behavioral drivers and addressing these drivers and employee behavior by making changes or using nudges in processes or in organizational contexts. It is based on the assumption that people do not always act rationally. |
More on risk management: Credit Risk Management, Event Chain Methodology, Operational Risk Management, Risk Appetite, Risk Management. You may also like: Full-time MBA, Executive MBA, Executive Education, Online MBA. MBA Brief offers concise, yet precise definitions of concepts, methods and models as taught in a study Master of Business Administration. We like to keep things short, and provide links to learn more about your subject.
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