Maslow's Pyramid for Risk Management: A Hierarchical Approach to Professional Mastery

This article reinterprets Maslow's Hierarchy of Needs for risk management professionals, arguing that true mastery and effectiveness are built upon a foundational understanding of probability theory, decision science, behavioral economics, and ethics. It challenges the common practice of expecting risk managers to immediately influence strategy without first establishing these critical competencies and deep business knowledge. For audit and assurance professionals, this framework highlights the importance of assessing the underlying capabilities of an organization's risk function, moving beyond superficial compliance to evaluate whether risk analysis genuinely informs decision-making and creates value.