The simplest and comprehensive definition of risk is - the probability of non-occurrence of an event or a set of events. Thus risk management is the affair of managing the same. The obvious question that crops up in the mind is, how does one proceed with managing something that is ex-ante in nature? Several subjective biases can lead to enormous biases in prediction resulting in erroneous deductions. This article discuses the behavioral aspect of risk management and how cognitive biases play a crucial role in investment decision-making.

Only two things are infinite, the universe and the human stupidity, and I'm not sure about the former.

risk management , investment, decision-making, behavioral finance, behavioral economics, making processes,subjective biases, behavioral aspect, cognitive biases, decision-making.