Risks & Decision Making

Everything you do in both your business and personal life involves some risk. Even crossing the street involves risk. Before crossing the street, we mentally assign a probability of reaching the other side alive. If the probability is high, we walk across. If it's low, we wait until the probability becomes high. We assess the probability of rain every morning so we'll know whether to carry an umbrella to work or not. We don't consciously think about these simple things in mathematical terms, but subconsciously that's what we do.