A Decision-Making Process Incorporating Cognitive Biases
This piece on decision making incorporating cognitive biases is taken from Chapter 9 of ‘People Risk Management: A Practical Approach to Managing the Human Factors That Could Harm Your Business’ by Keith Blacker, Patrick McConnell published by Kogan Page? (April 28, 2015), hereafter referred to as [PRM].
References are identified in the book’s bibliography.
Access the chapter HERE
Head of Investment Management
5 年That's one of the most useful business practice suggestions I've read.? Thank you for posting.
Freelance trainer, consultant, facilitator and mentor
5 年I find the concept of how all forms of bias impact on risk management and decision making to be fascinating. An understanding of this lifts risk management out of the box ticking silo in which it so often is allowed to languish.
How to Get Your Boss's Boss to Understand by Communicating with FINESSE | Solutions for people, facilities, infrastructure, and the environment.
5 年Patrick, I like decision frameworks, whether 3 steps, 8 steps, or 10 steps.? Most don't discuss experience/expertise and assume we are trying to stamp out bias.? What are your thoughts on sorting out expertise from bias in the process?
pensions | audit | risk
5 年Jolanda Salomons - Buirs
Structured Solutions Architect at Causal Capital
5 年Andrey, thanks for drawing my attention to this article. Patrick, I am liking this book https://amzn.to/2S1QzQs you have coauthored, and there are some fascinating topics within. Indeed, some of the critical areas you address are very relevant to the world of risk management in banking which is one of my big interest areas. In regards to the chapter "A DECISION-MAKING PROCESS INCORPORATING COGNITIVE BIASES", there are some curious statements to ponder on "Nor are we generally taught ‘decision-making’ in school." >>> Schools often don't prepare people for decision making in a commercial context, and I see "decision-making on the job ... being subjected to biases" as perhaps one of the most significant sources of risk businesses must struggle to overcome. Most importantly is your guidance or checklist around Pre-Decision, Decision and Post-Decision. This is extremely useful for managers and should help them move into a critical thinking space. These tables of yours need to be cut out and disseminated across all management teams in a company, perhaps demonstrated with examples to help employees combat biases they may harbor.