How to reduce decision biases
Regular, timely reviews of decision-making processes and outcomes will be helpful.
INDIVIDUALS tend to make biased decisions. For instance, heuristics guide our judgements to help us cope with human limitations in cognition and complex circumstances. Unfortunately, heuristics may result in cognitive biases that deviate from rational thinking with potentially severe errors.
Directors on corporate boards are no different. They also have decision biases. Working towards reducing decision biases should be a focus of high-impact boards. This is more important with the increasing volatility, uncertainty, complexity and ambiguity of the global business landscape.
Common decision biases in corporate boards
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Companies & Markets
AMD slides after AI chip forecast misses lofty estimates
IBM wins reversal of US$1.6 billion poaching award to BMC
Binance founder Zhao Changpeng gets 4 months in prison
Singapore Airlines could post highest-ever earnings of about S$2.7 billion for FY2024, says analyst
Amazon’s Twitch starts rival to TikTok in short-form video
Pinterest revenue surges on popularity of shopping push