4: Greg Davies | Behavioral Insights to Maximize Anxiety-Adjusted Returns
As an expert in applied decision science and behavioral finance, Greg gives one example after another on how you can design your practice, your process, and your conversations for optimal behavior and better outcomes.
Greg Davies is the head of behavior at Oxford Risk, where he focuses on improving financial decision-making through the use of behavioral science, and is the co-author of the book Behavioral Investment Management.
Greg works with advisors and planners around the world on how to apply behavioral finance in order to make optimal decisions in the face of complexity, uncertainty, and behavioral biases.
We discuss:
- The two types of financial plans: One for technical knowledge and one for governing behavior
- How the implementation of technology unlocks your ability to give better advice AND focus more on the human side of the relationship
- The importance of nailing the risk assessment with a focus on anxiety-adjusted returns instead of risk-adjusted returns
- The three components of risk assessment: Risk Tolerance, Risk Capacity, and Emotional Capacity and how to incorporate them all
- Where he thinks behavioral finance will be within the industry in 2030
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About our Guest:
Greg is a specialist in applied behavioral finance, decision science, sustainable investing, and financial well-being.
He founded the banking world’s first behavioral finance team at Barclays in 2006, which he led for a decade. In 2017 he joined Oxford Risk to lead the development of behavioral software to help people make the best possible financial decisions.
Greg holds a PhD in Behavioural Decision Theory from Cambridge; has held academic affiliations at UCL, LSE, Imperial, and Oxford; and is the author of Behavioral Investment Management.
Greg is Chair of Sound and Music, the UK’s national organization for new music; and creator of Open Outcry, a ‘reality opera’ that premiered in London in 2012, creating live performances from a functioning trading floor. He is also a frequent speaker and runs CPD-accredited Behavioural Wine Tasting events with Master of Wine John Downes: A unique interactive event combining decision science, live psychology experiment … and wine.
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