Established in 1984, the Wharton Risk Management and Decision Processes Center is a nexus of people and projects devoted to furthering the practical understanding of how to manage situations of risk involving health, safety, and the environment in both the private and public sectors of our society. For over twenty-five years, the Center has been at the forefront of research into the management of low-probability/high-consequence events. In addition to working on programs of basic and applied research, Risk Center faculty serve on national and international advisory committees, with partnerships in government, academia, industry, and NGOs.
Building on the disciplines of economics, decision sciences, finance, insurance, and marketing, the Center’s research program is focused on descriptive research and prescriptive analyses. Descriptive research focuses on how individuals and organizations interact and make decisions regarding the management of risk. Prescriptive analyses propose ways that individuals and organizations, both private and governmental, can make better decisions regarding risk. The Center supports and undertakes field and experimental studies of risk and uncertainty to better understand the link between descriptive and prescriptive approaches to decision making in coping with technological and natural hazards under various regulatory, environmental, and market conditions. Center research investigates the effectiveness of strategies such as incentive systems, insurance, regulation, and the communication of risk information.
The Center actively engages multiple viewpoints, including the expertise of top-level representatives from the worlds of insurance, industry, academia, environmental concern, law, and government. This site provides information on ongoing research, current and past publications, and upcoming events.