Quick Tip - Be aware of the effect of risk perception
You can't ignore the silent effect of risk perception.
People perceive risks differently. Each one of us has our own perception of risk, which affects our judgments and decisions.
Research shows that risk perception influences our judgments and decisions silently, without any conscious thoughts. It may be tempting to label someone as irrational or biased when their view does not conform to the dominant group position. But it is a natural outcome of the differences in our personal values and experiences.
When you evaluate risks in a team setting, it is very important to be aware of the silent effect of risk perception. Establish a common understanding of the context, definitions and criteria for risk evaluation. Allow individual differences of opinions to surface naturally, without undermining or suppressing them. Then facilitate a group discussion to reach alignment on risk ratings and acceptability judgments.
Diversity in group thinking can be an asset, but you need good facilitation.
Check out this article to learn more!
Risky or not?
Just like beauty, risk is in the eye of the beholder! What is high risk to someone is not a big deal to another. A dimly-lit alley with no one around? To some, it may be a potentially very unsafe situation. To many others, this is nothing to worry about.
Hi Naveen,
I read this and the click-thru. As a lover of history and fascinated by neurology some of this IMO is tied up in cognitive bias of one sort or another. One of my favorite authors is Michael Lewis. In one of his books he profiles a short-seller who has an investment strategy wholely governed by the observation that ALL HUMANS are profoundly bad at assessing risk :)