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 and loss are defined in the scenario as descriptions of outcomes (e.g. lives lost or saved, disease patients treated and not treated, lives saved and lost during accidents, etc.).

Prospect theory shows that a loss is more significant than the equivalent gain,[2] that a sure gain (certainty effect and pseudocertainty effect) is favored over a probabilistic gain,[3] and that a probabilistic loss is preferred to a definite loss.[2] One of the dangers of framing effects is that people are often provided with options within the context of only one of the two frames.

https://en.wikipedia.org/wiki/Framing_effect_(psychology)

 

Check out other risk management books

Fundamentals of Risk Management: Understanding, Evaluating and Implementing Effective Risk Management
The Standard for Risk Management in Portfolios, Programs, and Projects

Help spread the messages in this guide by sharing it with your colleagues  https://www.researchgate.net/publication/323254437_GUIDE_TO_EFFECTIVE_RISK_MANAGEMENT_30

More information about RISK-ACADEMY, our training courses and services at www.riskacademy.blog

RISK-ACADEMY offers online courses

sample85
+ Buy now

Informed Risk Taking

Learn 15 practical steps on integrating risk management into decision making, business processes, organizational culture and other activities!

19,999,99
sample85
+ Buy now

ISO31000 Integrating Risk Management

Alex Sidorenko, known for his risk management blog http://www.riskacademy.blog, has created a 25-step program to integrate risk management into decision making, core business processes and the overall culture of the organization.

199,999,99
sample85
+ Buy now

Управление рисками

В этом коротком и очень увлекательном курсе, Алексей Сидоренко расскажет о причинах внедрения риск менеджмента, об особенностях принятия управленческих решений в ситуации неопределенности и изменениях в новом стандарте ИСО 31000:2018.

19,999,99

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.