The recent series of corporate scandals in the U.S. and Japan force the corporate management to rebuild the capability to minimize potential losses from such scandals. An effective risk management scheme should be built into the entity's infrastructure and also as part of the essence of the enterprise. In order to have an effective risk management scheme, we should consider the management and other member's psychological aspects of decision-making in both individual and group settings. This is because the corporate process is pursued by the people who make up the organization.
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