Tag Archives: cognitive biases

If cognitive biases in decision making are a given, how do risk managers overcome them?

If cognitive biases in decision making are a given, how do risk managers overcome them?

If we accept there is a cognitive bias in decision making, how can we as risk professionals account for this and help our senior executive make better bias-free decisions? Risk Academy’s Alex Sidorenko discusses. Originally published for Knowledge@StrategicRisk https://www.strategicrisk-asiapacific.com/the-knowledge/overcoming-cognitive-bias-in-senior-executives/1428016.article   The earliest psychometric research was performed by psychologists Amos Tversky and Daniel Kahneman (who later won a Nobel […]

3 fatal mistakes corporate risk managers make (part 2)

3 fatal mistakes corporate risk managers make (part 2)

A while back I wrote an article about 3 fatal mistakes risk consultants make https://riskacademy.blog/2017/01/14/3-fatal-mistakes-most-risk-consultants-make. It made quite an impact and was republished in Australia, Canada, Singapore and Europe with dozens of thousands of views. I feel it’s only fair to write a follow up article about the 3 more mistakes that risk managers themselves […]

FREE WEBINAR: 4 practical steps to move from standalone risk management to risk-based decision making

FREE WEBINAR: 4 practical steps to move from standalone risk management to risk-based decision making

Risk management is changing with more than ever focus on integration and human culture and cognitive aspects. It sounds obvious, but is it really? Here is a quick test: Which typical risk management element/tool has the least amount of value? Risk management framework Quarterly risk assessment workshops Risk reports Risk registers Heat maps? In my […]

Resources on cognitive biases in risk management

What is the best resource for risk management to learn about cognitive biases, risk perception, and the reasons why simple risk assesments and risk workshops have almost zero chances to work? That’s right, old CIA handbook:  https://www.cia.gov/library/center-for-the-study-of-intelligence/csi-publications/books-and-monographs/psychology-of-intelligence-analysis/PsychofIntelNew.pdf Enjoy!

Why do accountants and other professionals need better risk management competencies?

Why do accountants and other professionals need better risk management competencies?

My original article posted at http://theaccountant.org.mt/why-do-accountants-and-other-professionals-need-better-risk-management-competencies Risk management competencies can significantly improve decision making in any profession. The bad news is that these competencies do not come to us naturally. They have to be developed. Even if you do not operate in a high risk, uncertain environment one should consider the extensive research, into what is […]

Cognitive biases every risk manager must know (part 3)

Cognitive biases every risk manager must know (part 3)

Overconfidence bias 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) […]

Cognitive biases every risk manager must know (part 2)

Cognitive biases every risk manager must know (part 2)

Overconfidence bias 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) […]

Cognitive biases every risk manager must know (part 1)

Cognitive biases every risk manager must know (part 1)

Overconfidence bias 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) […]

1000+ downloads in less than a week

1000+ downloads in less than a week

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 […]