More Comments On Risk

- risk management involves psychology, neuroscience and mathematics.

- in evaluating risk, emotions and logic are involved. If emotions dominate, there is an increased chance of getting the decision wrong, ie can discount the perceived risks. You need to control your instincts (basal ganglia and amygdala) and allow the rational mind (prefrontal cortex) to be in control. Thus risk-taking is a fight between the prefrontal cortex, ie thinking, rational part of brain and the basal ganglia and amygdala, ie instinctive, reactionary part of the brain.

- evaluate the benefits against the costs; with the cost being the risk

- remember that when evaluating risk with reward, the brain likes rewards, ie dopamine increases with rewards.

- safety is an evolutionary tactic for survival.

- understanding risk is like trying to pump the maximum amount air into a balloon, ie how do you determine when it might burst!!!!!

- focus on what you can control and slow your thinking.

- risk-taking does not necessarily mean you're a thrill seeker.

- framing of information will help determine your reaction, eg 5% chance of death versus 95% chance of survival. The latter puts a more positive spin

- loss is felt more than the gains.

- stress can either freeze you or will sharpen your instincts

NB Laughter releases stress-busting hormones

- it is thought that risk takers have a genetical pre-disposition

(source: ABC, 2019)

Search For Answers

designed by: bluetinweb

We use cookies to provide you with a better service.
By continuing to use our site, you are agreeing to the use of cookies as set in our policy. I understand