Cognitive Risk

This insightful book explores the pervasive risks of human decision-making, offering a framework to address cognitive risks and enhance organizational resilience in an accelerating world.

Cognitive risks refer to the subconscious and unconscious factors that influence human decision-making, particularly through heuristics and biases. The essence of Cognitive Risk is straightforward: as humans operate with bounded rationality, the rapid acceleration of information, data, and life necessitates the development of appropriate tools to not only keep pace but to thrive in an increasingly complex environment.

This book delves into the often overlooked yet pervasive risks associated with human decision-making. By examining case studies of corporate and organizational failures, Cognitive Risk highlights the scientific underpinnings of why we systematically make errors in judgment and tend to repeat these mistakes. Through a multidisciplinary approach, the author presents behavioral science in an accessible manner, using narratives to illustrate the cognitive errors that heighten risks while simultaneously remaining oblivious to these faults within ourselves and our organizations.

To address the challenges posed by cognitive risks, the book introduces a foundational cognitive risk framework aimed at enhancing enterprise risk management and cybersecurity. This framework comprises five pillars, each representing different levels of maturity, though there is no one-size-fits-all solution. Instead, organizations are encouraged to embark on their unique paths toward minimizing avoidable errors. The discussion culminates with a call to action, urging readers to become architects of risk solutions, leveraging appropriate technology and fostering collaboration to navigate the complexities of decision-making under uncertainty.