Lesson 50: Risk practice 7 – Culture Flashcards
How would you describe decision bias?
Decision bias is the inherent tendency for people to adopt mental shortcuts or faulty thinking processes to process situations and make decisions. Decision bias is natural and largely positive, allowing the brain to make rapid decisions.
Decision bias is natural and largely positive, allowing the brain to make rapid decisions.
Why do you think PRINCE2 bothers with this topic of biases in risk management?
We must make decisions about risks, and these decisions will be affected by our biases. Therefore, we must be aware of these risks and consider them when making decisions. Being mindful of these biases for risk management and our daily life is good.
Being mindful of these biases for risk management and our daily life is good.
What is ‘optimism bias’?
Optimism bias is a mindset that drives people to discount risk.
They assume that things are likely to be successful for them.
They assume that things are likely to be successful for them.
What is loss aversion bias?
Loss aversion is a mindset that values avoiding loss rather than making a gain.
Research has indicated that the emotional impact of losing €100 is roughly equivalent to the satisfaction of gaining €250.
Research has indicated that the emotional impact of losing €100 is roughly equivalent to the satisfaction of gaining €250.
What is groupthink bias?
Groupthink is a mindset that makes people value social cohesion in a group more than expressing an alternative point of view or reaching the right decision. The effect is that people don’t like to speak up if they believe something is wrong. Good facilitation can help to overcome this.
Good facilitation can help to overcome this.
What is risk proximity bias?
Proximity bias is a mindset where situations closer in time are seen as riskier and more critical than future situations.
