Safety and behavioral risk management - The bounds of classical risk management and the importance of a behavioural approach
3 important questions on Safety and behavioral risk management - The bounds of classical risk management and the importance of a behavioural approach
In ERM, there are two types of biases:
- Psychological biases
- Group Decision-making
Behavioral risk management (BRM):
Accepts and confronts the reality of bias in the decision-making process
In Risk identification there are the following kinds of risks:
- Knightian risk: the situation where probabilities are given (objective data)
- Knightian uncertainty: states are naturally defined or can simply be constructed, but probabilities are not measured (bayesian statistics)
- Structural ignorance: states are neither naturally given nor easily constructed by the decision-maker (bayesian statistics)
Try our study magic for free
a PDF, study it super fast
- No sign up, email or credit card needed!
- AI makes unlimited flashcards
- Get unlimited quizzes and tests
- Ask AI anything
Create a notebook
- No sign up, email or credit card needed!
- Have and keep perfect overview
- Make flashcards, notes and mind maps
- Review, test and score!
The question on the page originate from the summary of the following study material:
- A unique study and practice tool
- Never study anything twice again
- Get the grades you hope for
- 100% sure, 100% understanding
Remember faster, study better. Scientifically proven.
