Risk Management is Boring: Brain Hacks to Protect Your Business
One challenge for many businesses is the wonderfully unsexy world of risk management. Due to the overwhelming optimism of entrepreneurs, stopping the bad things happening can often be overlooked. However, when you let people rip you off, exploit your weaknesses or you just leave a small door open to be manipulated, it can be fatal, says Daniel Murray CEO of Empathic Consulting. Daniel gave the keynote address to over 400 people at Mainstream Conference 2019 in Melbourne, demonstrating the incredible power that empathy has to build business relationships in our digitally focused but disconnected age. In this article he gives us a different way to look at risk management and shares some ways to encourage people to engage their “moral compass” in order to self-regulate risk. It Turns Out We’re All Cheaters There were a number of interesting experiments conducted by professor Dan Ariely from MIT regarding cheating. They asked people to complete a challenging test, then they give them the answers to self-mark their effort, walk to the front of the room and shred their paper before telling the administrator the number of correct answers they correctly answered. They then receive payment for each correct answer. So, do people cheat? What was interesting was not that some people cheated, but that all people consistently cheated. Ariely had tampered with the shredder so they could check and indeed, almost all people cheated, not by a lot, but on average they increased the number of correct answers from 3 to 4 … Continue reading →