Does gender diversity affect a company’s risk management?
Do female board directors have less appetite for risk? Recent research attempted to reveal whether there is a link between gender in the boardroom and measures of risk.
Firms are under pressure to appoint more women as directors. This pressure is partially due to the moral or social justification that the current demographic of many boards of directors does not reflect that of the workforce or the population as a whole.
It is also often argued that there is a “business case” for more appointments of female directors. For example, because studies in economics and psychology find women to have less appetite for risk than men, it is suggested that female directors can curb excessive risk-taking.
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