FREE BOOK: Guide to effective risk management (50000+ downloads)

Risk management is ultimately about creating a culture that would facilitate risk discussion when performing business activities or making any strategic, investment or project decision. In this free book, Alex Sidorenko and Elena Demidenko talk about practical steps risk managers can take to integrate risk management into decision making and core business processes. Based on our research and the… Continue reading FREE BOOK: Guide to effective risk management (50000+ downloads)

Advertisements

54. Cognitive biases in risk management – Framing – Alex Sidorenko

The framing effect is an example of cognitive bias, in which people react to a particular choice in different ways depending on how it is presented; e.g. as a loss or as a gain.[1] People tend to avoid risk when a positive frame is presented but seek risks when a negative frame is presented.[2] Gain… Continue reading 54. Cognitive biases in risk management – Framing – Alex Sidorenko

54. Cognitive biases in risk management – Confirmation bias – Alex Sidorenko

Confirmation bias, also called confirmatory bias or myside bias,[Note 1] is the tendency to search for, interpret, favor, and recall information in a way that confirms one’s preexisting beliefs or hypotheses, while giving disproportionately less consideration to alternative possibilities.[1] It is a type of cognitive bias and a systematic error of inductive reasoning. People display… Continue reading 54. Cognitive biases in risk management – Confirmation bias – Alex Sidorenko

53. Cognitive biases in risk management – Semmelweis reflex – Alex Sidorenko

The Semmelweis reflex or “Semmelweis effect” is a metaphor for the reflex-like tendency to reject new evidence or new knowledge because it contradicts established norms, beliefs or paradigms. The term originated from the story of Ignaz Semmelweis, who discovered that childbed fever mortality rates reduced ten-fold when doctors washed their hands with a chlorine solution… Continue reading 53. Cognitive biases in risk management – Semmelweis reflex – Alex Sidorenko

52. Cognitive biases in risk management – Déformation professionnelle – Alex Sidorenko

Déformation professionnelle is a French phrase, meaning a tendency to look at things from the point of view of one’s own profession rather than from a broader perspective. It is often translated as “professional deformation” or “job conditioning,” though French déformation can also be translated as “distortion.” The implication is that professional training, and its… Continue reading 52. Cognitive biases in risk management – Déformation professionnelle – Alex Sidorenko

51. Cognitive biases in risk management – Neglect of probability – Alex Sidorenko

The neglect of probability, a type of cognitive bias, is the tendency to completely disregard probability when making a decision under uncertainty and is one simple way in which people regularly violate the normative rules for decision making. Small risks are typically either neglected entirely or hugely overrated. The continuum between the extremes is ignored.… Continue reading 51. Cognitive biases in risk management – Neglect of probability – Alex Sidorenko

Chris Mandel and Alex Sidorenko talk about risk management competencies on 08 February 2019… trying again

What makes a successful risk leader and risk strategy? Join Chris Mandel, ex-president RIMS, and Alex Sidorenko, RISK-ACADEMY, to talk about successful risk leader and risk strategy characteristics. REGISTER: https://events.genndi.com/channel/chrismandel I have written about this before and am really looking forward for Chris to contribute to the discussion. Here is also a short video summary of… Continue reading Chris Mandel and Alex Sidorenko talk about risk management competencies on 08 February 2019… trying again

50. Cognitive biases in risk management – Omission bias – Alex Sidorenko

The omission bias is an alleged type of cognitive bias. It is the tendency to judge harmful actions as worse, or less moral than equally harmful omissions (inactions) because actions are more obvious than inactions. It is contentious as to whether this represents a systematic error in thinking, or is supported by a substantive moral… Continue reading 50. Cognitive biases in risk management – Omission bias – Alex Sidorenko

49. Cognitive biases in risk management – Normalcy bias – Alex Sidorenko

The normalcy bias, or normality bias, is a mental state people enter when facing a disaster. It causes people to underestimate both the possibility of a disaster and its possible effects. This may result in situations where people fail to adequately prepare and, on a larger scale, the failure of governments to include the populace… Continue reading 49. Cognitive biases in risk management – Normalcy bias – Alex Sidorenko

48. Cognitive biases in risk management – Overconfidence – Alex Sidorenko

The overconfidence effect is a well-established bias in which a person’s subjective confidence in his or her judgments is reliably greater than the objective accuracy of those judgments, especially when confidence is relatively high. Throughout the research literature, overconfidence has been defined in three distinct ways: (1) overestimation of one’s actual performance; (2) overplacement of… Continue reading 48. Cognitive biases in risk management – Overconfidence – Alex Sidorenko

The most inspirational story about risk management you will ever read ;)

Most of you know me as an obnoxious risk manegement blogger who is rude to anyone who uses heatmaps and risk registers as well as to people who think that running risk workshops and prepaing quarterly risk reports is a good idea.  But there is a lot more to the story. Here is how me… Continue reading The most inspirational story about risk management you will ever read 😉