Behavioral Finance Theory as an Entrance to Effective Risk Management an Exploratory Study of the Opinions of a Sample of Workers in Iraqi Industrial Companies

• Post by: Muthanna mjdes
• November 10, 2022
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Hassan Shaker Al-Shamry and Haider Hamoudi Ali

University of Kufa / College of Administration and Economics

Abstract

Financial and operational risk management is one of the fundamental challenges facing the management of companies and traders in the financial markets. The aim of the research is to delve into effective risk management, identify its indicators and strategies, and choose the appropriate ways to address them by diagnosing the impact of behavioral and psychological factors, The broad model of research has been developed through a broad and in-depth review of the literature related to the research axes: behavioral finance (reduction to arbitrage, cognitive psychology, overconfidence, cognitive dissonance, consolidation, framing, Certainty, late cognition, remorse) as the independent variable, active risk management (risk understanding, risk definition, risk assessment and analysis, risk control and control) as the dependent variable.The research community was the Iraqi industrial sector. The General Company for Southern Cement was selected as a sample for research, 60 questionnaires were distributed and 52 were received. Data have been subjected to statistical and financial analysis through statistical software (spss, v, 23). The results have shown that there is an impact on the macro level and sub-dimensions of behavioral finance in active risk management.

DOI:10.52113/6/2018-8-3/60-72