Sunday, 6 April 2008

Risk Redefined!

"In this country, you gotta make the money first. Then when you get the money, you get the power. Then when you get the power, then you get the women."....Al Pacino - Scarface...

Hmmmmm....and this was a blog on trends and innovations in banking and financial services...fear not.....

A research conducted recently at the University of Berkley, determined a correlation between sex and propensity to taking greater financial risk! Hence, when young men were exposed to erotic pictures, they were more likely to make a larger financial gamble than if they were shown a more scary or neutral image such as a snake.

This is in line with an increasing amount of research being undertaken in the area of neuroeconomics, which attempts to understand better the areas of brain biology with softer aspects of human psychology and its influence on individuals / organisation's perspectives and actions on undertaking financial risks.

The above study may be criticized for its accuracy, but there is obviously a need to understand the genetic code and stimuli that stimulate greater financial risk taking abilities.

Innovation and risk taking go hand in hand and am looking forward to more breakthrough research in this area.

If you'd like to read more on neuroeconomics click here to get started..

Picked up from Wikipedia...
"Neuroeconomics is the subset that focuses on personal choices and the mental changes that correlate with the choices and may even cause them. A key insight is that the biological substance of a living organism can be modeled as implementing an optimizing solution to some survival/reproductive challenge in the evolutionary environment."

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