The most recommended books about risk

As someone who hoarded toilet paper weeks before the 2020 shortage, I relate to the frustration of watching history repeat itself (or at least rhyme with itself) because people are often too distracted to focus on planning for looming crises.

Bina Venkataraman gets to the “why” of this often-fatal flaw as she explores the nature of human decision-making. This book provides tangible narratives as a springboard to answer these questions: How can we use wisdom from our ancestors to better inform our personal, professional, and policy decisions? How can we incentivize (or glitter bomb) long-term planning? And how can we see ourselves as future ancestors in order to be better stewards of the planet?

A perfect selection for corporate, government, and non-profit retreats and professional development conferences!  

This edited volume provides an insightful collection of successful examples of the wave of re-municipalisations of water around the world.

Overall, there were 235 cases of water remunicipalisation in 37 countries, affecting over 100 million people between 2000 and 2015.

Reviewing the experiences of these instances of taking control of water back into public hands, the book provides a valuable discussion of what is necessary for making water re-municipalisation a success of progressive politics.

It outlines what is possible, but also what the dangers are, which need to be confronted. 

This book is certainly the most technical among my favorites. However, I cannot resist listing it here because I really love it. Honestly, I highly esteem Peter Wakker, and I learned tremendously much from his scientific papers. Therefore, I read this book with high expectations, and these were fully fulfilled.

I learned from this book what prospect theory is and how it developed. I learned Prof. Wakker’s view on decision theory, and this strongly shaped my personal understanding of many decision-theoretical problems.

When I first saw Brené Brown’s viral TED talk on vulnerability in the early 2010s, it challenged my understanding of the term and opened a whole new world for me, as it did for millions of others. At the time, I was a senior editor at Business Insider, and Brown’s work became a model that helped me navigate life inside a demanding, fast-paced media startup—and the complex human challenges of being a new manager. In Daring Greatly, she redefines vulnerability as a strength, upending traditional beliefs and reshaping how leadership is understood.

Brown argues that vulnerability is a critical skill for leaders in today’s evolving world of work, where workers crave authenticity, and emotional intelligence and empathy are more effective than outdated command-and-control methods—especially in increasingly dynamic organizations. Her research-backed tools have guided many on personal journeys to greater emotional freedom, just as they did for me.

Years later, I… show more.

US economist Frank Knight is credited with distinguishing uncertainty from risk back in 1921. Yet the two are often conflated.

Kay (an eminent economist) and King (a former Governor of the Bank of England) argue powerfully that the distinction does matter. They range widely across macroeconomics, politics, and consumer choices to show why reducing the future to a set of numbers (probabilities) creates a false – and often disastrous – illusion of power over future outcomes.

They argue that instead we should aim to make decisions that stand a reasonable chance of being robust against unknowable, as well as forecastable, paths that the future might take. That’s very much the ethos of my own books: building in resilience is a key part of successful personal financial planning.

This book taught me a great deal about how managing risk differed between modern and past times. This helped me to spot whether a “prediction” is likely to happen. (In investing, plenty of “experts” often like to predict a crash, a bull market, or a bubble).

Humanity used to rely on oracles and soothsayers to have a clearer vision of what the future would bring. Questions like: What jobs would be in demand in X years? What kind of risks should we prepare for in our lives and careers? Which companies would grow or go bust? With the right mindset and risk management tools, I’ve learned to answer these questions better.

Another classic, which influenced my book. Ron is the founder of RiskThinking AI, which focuses on the financial effects of climate change.

His fascinating stories include one of the first fatalities from self-driving cars, when it struck a woman with a bicycle running to cross the road. Any human driver would have seen an uncertain image and slowed down, playing out a group of possible scenarios. But AI hasn’t learned that kind of humility.

Eventually, when it does, the machines and people will learn how to manage risk together, and that will lead to more courage. The best part of this book is his insight into how the use of new technology changes human behavior.  

If you want to know why money laundering is so appealing, in this book, you will find out why. The author, through his experience as an investigator, includes a chapter on the motivations that lead people to get involved in money laundering. It helped me a lot to understand why people do it; maybe you get surprised like I did. He also includes different mechanisms with which criminals move money and intertwines the relationship between fraud and money laundering, giving a useful perspective to minimize these risks in any company.

This book is totally hilarious! It’s really pacy, utterly wacky, and laugh-out-loud silly. The pages are packed with lots of funny illustrations so none of the text seems overwhelming or goes on too long. It’s a handbook on how to avoid danger, written by Dr. Noel Zone, the greatest (and only) "dangerologist" in the world, and covers sneaky snakes posing as toothbrushes, sharks hiding in toilets, to robots disguised as kindly grandmas. My son, a reluctant reader first listened to the audiobook- which is narrated fantastically (we were in fits of giggles listening to it in the car), and then he happily and quickly read the second two books in the series. I think audiobooks are a fantastic way to get kids hooked on new characters and discover new authors.

All investing is risk-taking, and this is the best book on risk-taking that I know. Not just risk-taking as mathematics or games (although both of those are important), but risk-taking as a philosophy of life.

I would pick out two main insights. First, risk is intrinsically neither good nor bad, it is just a dial you can turn up or down. Second, your aim should be neither to minimise nor maximise risk, but rather to take the right amount of risk, and so achieve what this book calls “risk ignition”.

One contextual caveat: the value I see here is a deep understanding of risk, not specific recipes.