The psychological dimension of managing risk is of crucial importance  and its study has led to the identification of specific do s and don ts Those with an understanding of the psychology underlying risk and the skills to recognize its manifestation in practice  have the opportunity to develop frameworks that embody the do s and don ts  thereby producing sound judgmentsThe psychological dimension of managing risk is of crucial importance  and its study has led to the identification of specific do s and don ts Those with an understanding of the psychology underlying risk and the skills to recognize its manifestation in practice  have the opportunity to develop frameworks that embody the do s and don ts  thereby producing sound judgments and good decisions Those lacking the understanding and the skills are destined to be hit and miss in their approach to risk management  doing the don ts and not doing the do s Virtually every major risk management catastrophe in the last fifteen years has psychological pitfalls at its root The list of catastrophes includes the 2008 bankruptcy of Lehman Brothers and subsequent global financial crisis  the 2010 explosion at BP s Macondo well in the Gulf of Mexico and the 2011 nuclear meltdown at the Fukushima Daiichi power plant A critical lesson from psychological studies for those involved in risk management is that people s judgments and decisions about risk vary with type of circumstance In Behavioral Risk Management readers will learn that there are specific actions that organizations can undertake to incorporate understanding  recognition  and behavioral interventions into the practice of risk management There are many examples throughout the book that illustrate doing the don ts The chapters in the first part of the book introduce the main ideas  and the chapters in the latter part provide insight into how to apply those ideas to the practical world in which risk managers operate