American Research Journal of Humanities and Social Sciences

The paper examines the risk management practices of investors of Bangladesh, special attempts are made to understand and dissect the psychological predispositions of the investors of Bangladesh. In this paper, an attempt has been made to investigate the nature and types of investment risk management and analyze determinants of investment risk management from a psychological perspective that influences investors’ investmentdecision-making process. The objective of the study was to critically examine risk management practices of investors in Bangladesh i.e., types of risk, procedure, and techniques used to minimize the risk, etc. The paper also put forth some recommendations to overcome those psychological biases. Using secondary sources of data, this research employs qualitative research techniques to investigate the research questions. The study reveals that a significant number of investment risk management strategies are adopted and practiced by the investors in the investment decision-making process. The psychological perspective of investment risk management plays a key role in making those decisions. The study found significant support for the psychological impetus of the investment decision-making process. This paper also uses the context of Bangladesh where data fit into.