Given the lameness of the bible of psychological diagnostics, the DSM, it’s pretty easy for the lay public to play armchair
psychologist, particularly in the realm of organizational behavior. The Financial Times supplies an unadulterated dose tonight in the form of an article titled, Call in the nerds – finance is no place for extroverts.
Here’s the premise:
There is a compelling body of evidence suggesting that the people most likely to go into the riskier areas of financial services are precisely those least suited to judging risk. Susan Cain’s recently published book Quiet cites a series of studies that suggest that extroverts tend to be attracted to the high-reward environments of investment banking, deals and trading. And, troublingly, these outgoing people also tend to be less effective at balancing opportunity and risk than some of their more introverted peers.
Ms Cain tells the story of Vincent Kaminski to show what can happen to a business when
Continue reading “Whom to Blame for Excessive Risk-Taking?”