Growing evidence shows that positions of power in politics and business may corrupt the ability of those in them to behave rationally. It’s time for risk managers to take heed.
Article published in the winter 2016 edition of Enterprise Risk, the official magazine of the Institute of Risk Management (UK).
Hubris is almost an occupational hazard for leaders, for it feeds on the isolation that often builds up around (them)….
Hubris is an urgent problem for banking and business leaders, which they show few signs of recognising. Whilst a mass of new regulatory procedures have been put in place, as yet the role and importance of personality change is deliberately underplayed and even ignored.
For all the money and time business spends on risk management, building complex models and using quantitative statistical methods, it needs to devote at least as much money and effort to biological, chemical and human resources research on personality and behaviour
View the PDF here: hubris-and-risk
For online access to the magazine (from late January 2017) visit Enterprise Risk