Title
Addressing the Kahneman “Noise” in Estimating Risk
Description
Assessing risk requires making judgment calls. To do this we account for known variables. But what about unknown variables? Judges and doctors often make different calls predicated on the same data depending on whether they do this before or after lunch. Lunch, and many other unrecognized “noise” variables can have a huge impact. Here, we will apply Nobel-winner Daniel Kahneman’s latest book, Noise: A Flaw in Human Judgment. Learn about how "noise" impacts risk management and what to do about it.
Core Competency #3: CTIS – Critical Thinking & Interpersonal Skills:
Decision-Making
Course Level
Intermediate
Learning Objectives
Objective 1: Learn how “noise” impacts human judgments across the spectrum of human decision-making
Objective 2: Understand how “noise” impact underwriting specifically
Objective 3 Learn how to conduct a “noise audit”
Track
Risk Control