Cognitive Biases and Their Impact - 27 (Zero-Risk Bias)

Zero-Risk Bias Definition Zero-risk bias is a cognitive tendency where individuals prefer options that eliminate risk entirely, even when these options may lead to less favourable outcomes. This bias leads to a preference for certainty and the avoidance of potential risks, even if taking a calculated risk could yield better results. This inclination towards the known and secure can prevent individuals and organisations from making decisions that could lead to significant advancements and improvements. Discovery and Origins Zero-risk bias was first formally recognised and studied by psychologists in the context of risk assessment and decision-making. The concept was prominently discussed in a 1980 paper by Howard Kunreuther, Robert Meyer, and their colleagues, who examined the ways people manage risks. They found that individuals often make decisions that eliminate small risks completely rather than make choices that would reduce overall risk more effectively. This tendency was noted in...