International Journal of Business and Social Science

ISSN 2219-1933 (Print), 2219-6021 (Online) DOI: 10.30845/ijbss

Clods Online: Fraud and the Global Financial Crisis – How Brain Information Processes Undermine Our Ability to Yield Sound Decisions
Krystyne Pniewki

This is an investigation into the putative link between the processes involved in making judgments and the resultant decisions which prove detrimental. This will be achieved through an examination of two well-known and very troublesome outcomes of these processes. The first is the ease with which people become victims of fraud and the second is the Global Financial Crisis. A possible or partial explanation for errant or unethical decisions lies in the fact that heuristics, which spill over into overconfidence are more likely to be utilized. However, ‘reflective introspection’, sometimes called ‘reflective engagement’ or ‘reflective problem solving’ which is underutilized, is far more conducive to individuals, organisations and institutions in making sound decisions.

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