Managerial behavioural biases in financial institutions have been one of the main causes of the global financial crisis (2007 – 2009).” Using the concepts of risk aversion, loss aversion, information asymmetry and heuristics, critically discuss this statement while giving practical examples and utilising real-life case studies.
Extra information:
Figures and tables (only if they contain numbers or stats)
Appendices (do not use them unless necessary; they are not marked!)
Don’t write a long introduction. In particular, there’s no need to introduce basic concepts (risk etc) unless they’re critical
Up-to-date materials are prioritised and are urged to be used rather than outdated materials
Also, when it will come to heuristics, only choose and compare with each other, two heuristics from seven (Affect Heuristi, Availability Heuristic, Representativeness Heuristic, Anchoring Heuristic, Hindsight Bias, Desire for Certainty and Illusion of Control)
You can also consider discussing pros and cons of risk aversion; causes and effects of information asymmetry, comparing two heuristic, pros & cons of managerial incentives etc. Most important is that the discussions are not just descriptive where students only define and describe things without digging dip into things by critically discussing given statement while giving practical examples and utilising real-life case studies.