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Using Technology to Encourage Critical Thinking and Optimal Decision Making in Risk Management Education

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  • John Garvey
  • Patrick Buckley

Abstract

This article draws a link between the risk management failures in the financial services industry and the educational philosophy and teaching constraints at business schools. An innovative application of prediction market technology within business education is proposed as a method that can be used to encourage students to think about risk in an open and flexible way. This article explains how prediction markets also provide students with the necessary experience to critically evaluate and stress‐test quantitative risk modeling techniques later in their academic and professional careers.

Suggested Citation

  • John Garvey & Patrick Buckley, 2011. "Using Technology to Encourage Critical Thinking and Optimal Decision Making in Risk Management Education," Risk Management and Insurance Review, American Risk and Insurance Association, vol. 14(2), pages 299-309, September.
    • Handle: RePEc:bla:rmgtin:v:14:y:2011:i:2:p:299-309
    DOI: j.1540-6296.2011.01200.x
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    File URL: https://doi.org/10.1111/j.1540-6296.2011.01200.x
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    References listed on IDEAS

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    1. David L. Eckles & Martin Halek, 2007. "The Problem of Asymmetric Information: A Simulation of How Insurance Markets Can Be Inefficient," Risk Management and Insurance Review, American Risk and Insurance Association, vol. 10(1), pages 93-105, March.
    2. Robert E. Hoyt & Lawrence S. Powell & David W. Sommer, 2007. "Computing Value at Risk: A Simulation Assignment to Illustrate the Value of Enterprise Risk Management," Risk Management and Insurance Review, American Risk and Insurance Association, vol. 10(2), pages 299-307, September.
    3. Patricia Born & William Martin, 2006. "Catastrophe Modeling in the Classroom," Risk Management and Insurance Review, American Risk and Insurance Association, vol. 9(2), pages 219-229, September.
    4. Robin Hanson, 2007. "Logarithmic Market Scoring Rules for Modular Combinatorial Information Aggregation," Journal of Prediction Markets, University of Buckingham Press, vol. 1(1), pages 3-15, February.
    5. David T. Russell, 2000. "Two Classroom Simulations in Financial Risk Management and Insurance," Risk Management and Insurance Review, American Risk and Insurance Association, vol. 3(1), pages 115-124, March.
    6. Jed D. Christiansen, 2007. "Prediction Markets: Practical Experiments in Small Markets and Behaviours Observed," Journal of Prediction Markets, University of Buckingham Press, vol. 1(1), pages 17-41, February.
    7. Michael M. Barth & John J. Hatem & Bill Z. Yang, 2004. "A Pedagogical Note on Risk Framing," Risk Management and Insurance Review, American Risk and Insurance Association, vol. 7(2), pages 151-164, September.
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