I was looking for some new books to read and thought I would take this opportunity to put together a list of the best books on risk management. This list focuses on infotainment books—informative but also fun to read. They are great reads for risk managers, consultants, analysts, or anyone interested in decision-making under uncertainty. They also make excellent gifts for professionals in the field.
1. Thinking, Fast and Slow – Daniel Kahneman
Status: Completed
This book was recommended for my Master’s in Risk Analysis. I was initially surprised to see what was essentially a ‘popular science’ book rather than a textbook, but now I fully agree that it is a good addition to the reading list.
What makes this book exceptional is how Kahneman transforms complex psychological concepts into engaging narratives. The distinction between intuitive System 1 and analytical System 2 thinking has profound implications for risk assessment. We often rely on quick, gut-level judgments when evaluating risks, but as Kahneman demonstrates, these intuitive assessments can be deeply flawed.
Recommendation level: Essential reading for all (risk) management professionals
2. The Black Swan – Nassim Nicholas Taleb
Status: Started but paused
I’ve made a dent in this one but found myself struggling with Taleb’s writing style. While the core concept of “Black Swan events” (highly improbable yet consequential occurrences) is highly relevant to risk management, I found the delivery challenging.
Taleb takes an aggressive stance against traditional statisticians and risk modelers, often using provocative language that can feel more like personal attacks than constructive criticism. While I appreciate his point that statistics have limitations in predicting extreme events, his dismissive attitude toward statistical methods seems counterproductive. Statistics do have a valuable place in risk management, even with their limitations.
I plan to return to this book with a more selective reading approach, focusing on the concepts rather than getting caught up in the polemic style.
Recommendation level: Worth reading for the concepts, but be prepared for the confrontational tone
3. The Checklist Manifesto – Atul Gawande
Status: On my reading list
While not exclusively about risk management, Gawande’s exploration of how simple checklists can prevent failures in complex environments has significant implications for risk mitigation. I consider myself a bit of a checklist geek. So I’m curious whether I can learn anything from this book.
4. The Failure of Risk Management: Why It’s Broken and How to Fix It – Douglas W. Hubbard
Status: Partly read
Although I haven’t finished the whole book, I studied several chapters extensively for my thesis on risk matrices. The book is accessible and offers valuable insights into why many risk management approaches fall short. Hubbard writes in an engaging style that makes complex concepts digestible.
That said, I found some parts to be a bit unnuanced. While this makes for a more entertaining read, it sometimes comes at the expense of a more balanced perspective. His critiques of traditional methods are sharp, but occasionally overlook nuances and contexts where simpler approaches might still have value.
Recommendation level: Recommended for risk managers, but take some of the more absolute claims with a grain of salt
5. Fooled by Randomness – Nassim Nicholas Taleb
Status: On my reading list
Another Taleb book, this one focusing on how we mistake luck for skill. Despite my challenges with Taleb’s writing style in The Black Swan, I’m interested in what made this a popular book among risk analysts.
6. Financial Risk Management: A Practitioner’s Guide – Steve Allen
Status: On my reading list
Financial risk management is not my main focus, but I would like to learn more about it. This book seems to be a good foundation for this.
Conclusion
I’d love to hear your thoughts if you’ve read any of these books. Which ones would you recommend? Are there any crucial ones I’ve missed? Let me know in the comments or connect with me on Goodreads.
Note: I’ll update this post with links to full reviews as I complete more books from this list.
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