8 Psychological Insights That Could Prevent The Next Crisis

8 Psychological Insights That Could Prevent The Next Crisis (westcoastjan)

People want to believe that they're in control of a situation. Even when that's fundamentally not the case, they continue to believe their experience and skills can influence a situation. That's particularly dangerous in finance where huge market forces are at play and large losses are possible.

To fight that bias, people who manage risk need to be reminded that some situations can't be managed, no matter how skilled and prepared people are, and that they should expect the worst.

Peak Prosperity: Daily Digest 10/28