Awareness of risk, lying at the initial stage of risk management, is incorporated in many fields of studies, like health control, natural disaster studies and financial collapse researches. However, given the behavioural distractions in creating awareness, awareness of such risks seldom is appropriate beforehand. Theoretically, had an awareness of risk been properly examined, pities, losses and hazards could have been avoided to a large extent. In practice, given inherent subjectivity, selecting appropriate ideas in advance can be much harder than understanding the situation afterwards. Though scientific views argue that improvements could have been made by modifying quantitative models, obstacles underlying such a process still include subjective judgements. Therefore, whilst on surface amendments are arguably achievable, in reality they can be highly limited. The rest of the passage will try to illustrate the hidden effects of human behaviours on awareness of risk during 2008 financial crisis. Admittedly, however, plausibility still exists in partial improvements beforehand. 2008 Financial Crisis seemed to come out of blue and shocked the whole world in the first place but was soon concluded by experts as a consequence of systemic risk. (Federal Reserve Bank of Atlanta, 2009) Characterizing such a risk are three consequences, including universal losses triggered by a single event (IBS, 2001), revelation of hidden correlations among financial institutions (Kaufman and Scott, 2003), and occurrence of a less optimal transition from one equilibrium to another (Hendricks, 2009). This systemic risk also draws attention to previously hidden risks and therefore perception of risks increased on an individual basis (Roszkowski and Davey, … … middle of paper … …ted States: Government Printing Office, before pp. 66. Lindsey (2010) Financial crisis inquiry report: final report of the national commission on the causes of the financial and economic crisis in the United States, United States. [Recording in possession of author]. Patterson (2010) Financial crisis inquiry report: final report of the national commission on the causes of the financial and economic crisis in the United States, United States. [Recording in possession of author]. Taylor, J. B. (2009) ‘How government created the financial crisis’, Wall Street Journal 9, pp. A19. The Economist (2008) ‘Confession of a risk manager’, [Online], Available: http://www.economist.com/node/11897037.htm. [30 Oct 2013]. Wilfield, W. E. (2013) Ethical reflections on the financial crisis 2007/2008: making use of Smith, Musgrave and Rajan, New York and Heidelberg: Springer, pp. 1-4.
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