People manage risk: Understanding risk attitude
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- čas přidán 13. 09. 2024
- People adopt different attitudes when they face situations that are risky and important, based on their perception of uncertainty. This influences their risk-taking behaviour and decision-making. David Hillson (The Risk Doctor) reveals to Dr Andrew Delo why this matters and how it can be managed.
6 A's of Risk Attitude (facing an uncertain situation)
Awareness and Appreciation - what is my attitude about the situation? why am I feeling like this? where is it coming from? is it rational, subconscious, emotional state?
Assessment - is my initial risk attitude ok or not?
Accept - go with it
Assert and Action - possible change is needed
Great Randy, thanks for pulling out these Six As. I have two small additions:
(1) Following the Assessment step, we can either Accept the existing risk attitude, or use Assertion & Action to change it. These are alternatives.
(2) The Six As are not only useful for managing my personal risk attitude in a given risky situation. We can also use the same model to help us understand and manage the risk attitudes of others, for example in our project team, or our customers, or senior management.
Thanks again.
Influence types:
Type 1: Conscious - rational assessment, logical approach
Type 2: Sub-conscious -
(a) heuristics, mental shortcuts e.g. group think
(b) cognitive biases e.g. familiarity
Type 3: Affective - emotions, feelings
These are the three elements of the triple strand - but remember that they interact with each other in coplex ways. We can separate them to try to understand each one better, but in reality they affect each other.
Risk attitude spectrum:
Risk averse - Risk neutral - Risk tolerant - Risk seeking
You got it!
brilliant stuff
+Francesco Malatesta . Thanks Francesco, much appreciated.
brilliant stuff
+Francesco Malatesta . Thank you Francesco, I appreciate your encouragement.