Friday, November 11, 2011

Risk Management Performance Benchmarking: Performance Benchmarking and Attribution Bias

Risk Management Performance Benchmarking: Performance Benchmarking and Attribution Bias 


One of the challenges for measuring the effectiveness of risk management (or any type of management system for that matter) is a little glitch in human perception known as attribution bias.   Attribution bias is simply our tendency to invent explanations and to attribute things to a particular cause (whether real or imagined).  These attributions serve to help us understand the world and give us reasons for a particular event.

For example, let’s say that Bill gets sacked from his job. He will attribute his sacking to... 

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