Wharton Risk Management and
Decision Processes Center
For three decades, the Risk Management and Decision Processes Center at the Wharton School of the University of Pennsylvania has been at the forefront of basic and applied research to promote effective corporate and public policies for low-probability events with potentially catastrophic consequences.
What We Do
Understanding and improving individual decision-making in the presence of uncertainty
Researching and evaluating strategies for risk communication, risk reduction, and risk transfer
Engaging decision-makers in designing
effective risk management policies
This summer, researchers from across the University of Pennsylvania are generating new policy-relevant and solution-oriented ideas to tackle climate risks. New solutions will be posted on a continuous basis throughout Summer 2019. Stay tuned in the fall for a synthesis report and events on campus.
In the News
The New York Times
Last fall, the Risk Center convened FEMA staff, along with insurance representatives and state officials, to talk about ways to get more Americans to buy flood insurance. But ideas presented new obstacles, whether practical, legal or political
Los Angeles Times
Op-ed by Carolyn Kousky: “Just as business-as-usual emissions are no longer tenable, neither is business-as-usual disaster policy.”
Risk Center Updates
Today, many homeowners are uninsured against flood damage. The lack of widespread take-up of flood insurance will not only impose financial strain on families but could have spillover effects in adjoining communities and may trigger foreclosures that hurt lenders. This paper describes the U.S. housing market’s exposure to flood risk and suggests directions for future research and action.
Scholars from across the social sciences who are using natural language processing and related tools to better understand human behavior attended this Wharton Risk Center conference in January 2019.
Why would a consumer, having decided whether or not to purchase insurance for a particular year, change that decision over time – even if their risk and premium remain exactly the same every year in the future? In a new study, Behavioral Economics of Multiperiod Insurance Purchasing Behavior: the Role of Emotions, we find that many people are swayed by their emotions and past experiences when making future insurance decisions.
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Wharton Risk Management
and Decision Processes Center
St. Leonard’s Court | Suite 130
3819 Chestnut Street
Philadelphia, PA 19104