Abstract Drawing on research in management theory, risk analysis, and the social
sciences, this installment of Business Law & Ethics Corner promotes diversity of
thought in corporate governance as not only beneficial to business growth and
creativity, but also imperative to managing risk successfully. The article begins with
a review of four major worldviews and the risk preferences of each. Next, it examines
psychological processes that guide human decision making and greatly influence risk
perception. The article then applies these worldviews and psychological phenomena
to the case of risk management. It offers a critique of current risk management
practices, drawing on evidence from the 2007—2008 financial crisis. The article
concludes by promoting increased diversity of worldviews in corporate governance
as a way to prevent the same risk blindness that led to the Great Recession.
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