Every business faces the same question: How do I maximise commercial opportunity while minimising risk?
In normal times this calculation is, at best, an imperfect one. In times of crisis, our cognitive biases take an even firmer grip on our decision-making and fear overwhelms our judgement.
Our guide, What the coronavirus tells us about business and risk, looks at the practical psychology of risk and how to manage rare events such as pandemics or what are known as black swan events.
Among the many distortions in our judgement are our tendency to:
- mistake the cognitive availability of an event with the probability of it happening
- accept the validity of data only when it aligns with our pre-existing beliefs
- equate truth with a strong narrative structure regardless of evidence
These distortions impair our ability to assess risk and deal with the consequences when they strike. In our guide you will find out:
- How marketing can decrease the risks facing your business
- The four steps your business can take to manage risk
- What the fifth risk facing the United States of America can teach us about managing commercial risks
In the context of the multiple crises of health, identity, social unrest, data security and economic collapse, this guide is essential reading for every business and you can download it here.