Risk Management

Notes

Claim

It is perhaps within our human nature that we tend to be more loss averse, meaning that we strongly prefer to not lose what we have, than to gain something of (supposedly) similar value.

Explanation

Risk management is also tied to our ability to predict the future and try to reduce Randomness and Uncertainty creates anxiety when knowledge and control are incomplete. The more we fail to do that, the more risk averse we are.

Why it matters

Our dislike of risk runs deep. Facing great risks, we might experience Emotional hijacking is uncontrolled System 1 dominance over reasoning, where fear and stress takes hold of us and do what's possible to avoid that risk. Often risk avoidance can lead to a Fixed mindset assumes capabilities are unchangeable from birth, because without facing risks and Challenges, we can't grow. We would be stuck in the status quo without any desire or hope for change. To live "safely" is to not live at all Helplessness is perceiving no control over circumstances and outcomes

Examples

Supporters

Opposers

Open questions

Visual

Overview

🔼Topic:: Attribution Bias ↩️Origin:: 🔗Link::