92. Why risk managers need to understand cognitive biases

Alex Sidorenko from RISK-ACADEMY talks about cognitive biases and why it is important for corporate risk managers to understand them and know how to work around them or limit their influence on decision makers. What do you think? – – – – – – – – – – – – – – – – At… Continue reading 92. Why risk managers need to understand cognitive biases

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