Have you ever wondered why losing something makes you feel way worse than gaining the same thing feels good? If this is you, fear not! You are not alone! In fact, scientists even have a name for it—loss aversion. And…
With life moving at lightning speed these days, getting a grip on how to handle risks is something we all need to learn. No matter if we’re dealing with our daily finances, kicking off a business, or making team decisions…
Key Takeaways Risk appetite vs risk tolerance: What are the key differences? Risk appetite reflects an organization’s strategic willingness to take risks to achieve its long-term goals, whereas risk tolerance defines the operational limits or bearable amount of risk an…
Key takeaways What are behavioral biases? How much should you worry about earthquakes, hurricanes, wars going on around the world, dengue flu, or inflation? And how much of a risk are you willing to take to avoid that associated with…
The Limits to Growth by Donell a Meadows could be the most rationally pessimistic book I’ve come across in quite some time. Summary Notes This could be the most rationally pessimistic book I’ve come across in quite some time! Some…
People are naturally risk averse. For instance, how many of us would search for a product on Amazon and go straight down to the reviews section to see what other people think? This is one out of many risk aversion…
Imagine you just received a $5,000 bonus. Now you are thinking about what to do with this unexpected money you’ve just got. Here are your options: If you’re risk-averse, you will probably put your money in a savings account. A…