Risk assessment is one area where our biases can cause faults in logic. Michele Wucker looks at how we can overcome these problems. Here are some key takeaways:
Leaders can offset these distortions by changing their processes to ensure that there are diverse voices around the table and by encouraging structured debate and constructive dissent. — Michele Wucker
By understanding bias and creating structures to defeat them, you can help colleagues avoid mistakes. This can be aided by diversity in the group which helps avoid confirmation bias.
In order to avoid risk on large scales, organizations need to allow all parts of the company to understand, embrace, and mitigate risk. By educating themselves about cognitive bias, the team is better prepared to correctly handle risks.
Individuals and organizations must work to overcome biases, make better decisions, create warning-signal systems and act cohesively when red flags are raised. — Michele Wucker