The anterior cingulate cortex (ACC) plays a critical role in processing loss by integrating emotional and cognitive aspects of decision-making. It is involved in evaluating conflicting outcomes, particularly when outcomes are negative or involve losses. Activation in the ACC is associated with the emotional response to losses, influencing attention and appraisal of risk, which can in turn affect future choices. The ACC helps signal the need for behavioral adjustments when faced with negative feedback, thereby contributing to learning from losses and modifying future actions.