What Your MBA Should Have Taught You About Risk Management

What Your MBA Should Have Taught You About Risk Management

Risk is inherent in business decisions. Here’s a modest proposal for risk management strategies every leader should learn.

Research shows most people chronically under- or over-estimate the chances of something bad happening. Even ‘data-driven’ companies are subject to common cognitive biases in how they interpret data. However smart individual managers may be, these biases are likely to lower the quality of daily business decisions. (Daniel Kahneman won a 2002 Nobel Prize for his research in this area.)

If only your MBA program had taught you differently.

 

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