How Different People See the Risk in Different Ways

In this podcast, Ricardo explains that the degree of risk exposure is the composition of the impact and severity of risk and that the definition of degree as high, medium or low involves the experience, culture, fears and emotions of those who are evaluating. He gives some tips on how to assess risk in an impartial manner.

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Episode transcript

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Hello, everybody. Welcome to the five minutes PM. Podcast and they're like to discuss with you how different people see risks in a different way. It's very important to understand that Risk it's the probability times the impact. So I need to understand that a high probability risk with a high impact has the next position for me, extremely high. And I need to take care of this Risk but the problem now he is not to discuss probability times impact.

We need to discuss how people see the probability and how people see the impact. It's very important. The people that are analyzing, they have different perceptions Different based on their experience or cultural aspects. That the way that the way we're raised it, it's Different let's suppose if I was kidnapped that I will see the kidnapping in a different way. If I live in Brazil, I see Risk regarding crime and violence in a different way of those live in, in Norway are those who are living in Asia are those who are leaving in Africa.

So it's very important because maybe for me Risk has a high impact Risk. But for all the people, they don't see that in the same way, base it on their cultural aspect, on their Valley's and their, in which points they are afraid, doubt hopes their emotions. So if I was raised it with fear, I will translate this to you in my risk analysis, inside my project. And it's very important to understand that at Dave Wilson, a publisher at the very, very good book that the eye, like what for me, is one of my favorites regarding risk management code understanding and managing the risk attitude.

He talks exactly what I'm covering in this. Podcast in one of his Graf that I like most, they compare the discomfort and comfort base it on the Risk exposition we have in one sight, what we call all the Risk para night, the Risk parent night is that Risk analyzer or the Risk group that received an extremely high level of discomfort. We have a very small exposition.

So every mine, no risk for them painful. If your other sites, we have what we call the Risk an addictive dose, why are addicted for Risk? So they are comfortable even with huge exposition to the tracts in the middle of this, we have what we call the tolerant or the more moderate people. So they, for a short, they go from comfort to discomfort, but not in an extremely way.

And very important to understand, because in our group, we can have someone that aspire or an ID or the one that is addicted. Some of them that are tolerant, and we need to analyze this group. And for sure, all of you are awaiting some answer or are some tips on how I can avoid this or how I can make a risk analysis in a better way. We've been a move on it in my decision, be moved by this kind of extreme environment.

So the first group work teamwork, what do you mean by that? Because if I have, instead of one, can I have five? I have six and will have different behaviors and they will, in some ways compensate each other, they will say, okay, I'm more paranoid. You are more addictive. So let's try to find a box balance on that. So the group that See, I'm not saying that the group, we will solve the problems, but it's much better than your own perception, because we will have only one line.

We have to see how to use that as experience. If you have five who have five different perceptions or the second that I like very much mathematical dues, when do we try to translate feelings into numbers? Sometimes this is not so hard. Sometimes these are extremely hard to do, but if we translate probability, let's do it fillings into mathematics. Let's give you an example. Let's suppose that I have a bag with five volts, three of them read two of them green.

And I know, and we want to know what is the probability to, of both the, my hand in the back and take it one green each to under five, this is mathematics. This is basic statistics. And this will translate. This is not high or low or high or low or much base it in feelings in our experience. Maybe if I'm a writer Risk addicted, I would say, know, this is extremely high. I have 40% of chance, but the find a resource parent I know, and I will say, this is impossible.

So look, so when we use mathematical to me, we can reach the agreement. Yes. And the easier way I'm not telling you that there's will solve the problems, but if you gave us some tools to do that, and the third one, for me, as important as the otters it's discussion debate, explain, okay. Why do you think this is big? Disney has a high probability, or if this is a low impact, why explain to me, what is behind your opinion?

What are your feelings and walk your conclusions? Why ask why, and try to reach consensus on why bring the numbers to the table. Discuss it's very important to wrap up this. Podcast it's very important. Understand that risk management is NEF mathematics business, not a 100% precise to me, but it's much more than doing nothing. It's much more to have at least a draft map that do not have anything it's so important to understand this.

There is no perfect because I don't have a crystal ball in my hand that I can imagine, figure out the future, the future, something that I do not have control, but doing the proper risk management, working as a team, the software tools and thinking group and trying to reach customers, I will improve my decision process regarding risk management. This is what are the like that you keep in your mind this way. So see you in next week. What if another five minutes? Bam.

Podcast thank you.

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