ABSTRACT
This chapter seeks to develop a cognitive risk management framework for real estate investment trusts (REITs) entrepreneurs and executives. It provides a brief overview of the cognitive and behavioural landscape and the notion of cognitive risk, attention is then turned to how to effectively manage cognitive risk in an enterprise setting. The chapter shows that REITs share common characteristics with other business enterprises and that knowledge related to business in general has applicability to REITs. It focuses on knowledge of cognition and decision-making in general business to develop a set of reasonable considerations for REIT leadership to apply in managing cognitive risk. Human cognition and its limits became a fruitful area of inquiry among US behavioural scientists in the post-war era. Recognizing the existence of cognitive risk is a necessary step, but not sufficient guidance, for managing REITs. In order to make decision-making effective, a holistic approach is essential for guarding against cognitive risk.
