In this talk by McCombs' Distinguished Senior Lecturer Britt Freund and UT Bureau of Economic Geology’s Chief Energy Economist Michelle Foss, we’ll explore the nature of risk analysis and discuss strategies for effectively addressing certain types of risk, using the oil and gas industry as an example.

What you will learn:

• How do people make difficult decisions when risks are unknown?
• Can you always make a rational economic decision if you properly consider all of the risks?
• What biases affect decision analysis?
• How does a corporation’s culture affect how people make decisions?
• When analyzing information, what is the threshold of evidence necessary to make a decision or override a previous one?
• Can you afford to protect against tail risk and at what level?