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Perception of risk in investment decisions is an emerging topic in behavioral finance discussions. Inspired by recent Chinese financial market turbulence, I will briefly present here main points of the risk perception issue, mainly picked up from much more descriptive Victor Ricciardi's article (Ricciardi, 2010) [1], which I found suitable for a blog form.

1. Perception of Risk

Perception is how we become conscious about the world and ourselves in the world. Perception is also fundamental to unde

Some five to ten years ago, a Project Controls colleague asked an interesting question. It is about the analysis/reports that our PC Group completes periodically. Some of the reports are “as required” but most times on a fixed cycle; e.g. bi-weekly, monthly, quarterly and annually.

He asked us, “What are the attributes of a good variance analysis?”

Reflecting on the questions, all which matter most, came pouring forth. While writing the bulleted central piece of what a good analysis/report is like