Understanding Risky Behavior: The Influence of Cognitive, Emotional and Hormonal Factors on Decision-Making under Risk

Financial risky decisions and evaluations pervade many human everyday activities. Scientific research in such decision-making typically explores the influence of socio-economic and cognitive factors on financial behaviour. However, very little research has explored the holistic influence of contextual, emotional, and hormonal factors on preferences for risk in insurance and investment behaviours. Accordingly, the goal of this review article is to address the complexity of individual risky behaviour and its underlying psychological factors, as well as to critically examine current regulations on financial behaviour. Keywords: decision-making, risky behaviour, risky context, risky content, cognitive factors, emotional and hormonal factors