decision makers Archives

Bad decisions habits research won Nobel Prize in economics

We welcome the fact that Bad decisions habits research won Nobel Prize in economics. We are going to expose why we are so enthusiastic about the research by Prof. Thaler of the University of Chicago. We will discuss why this research is useful in explaining the difficulties some organizations have in supporting risk-management programs. In the past we have already cited behavioral economics, for example the work by Kahneman and Tversky to show how human judgment is often clouded by…

Misleading risk assessment leads to Thames Water to pay £86m for overestimating flooding risks

Thames Water, UK’s biggest water company reportedly misreported the number of properties at high risk of sewer flooding between 2005 and 2010 leading to recording more properties at higher risk than there was evidence to support. This lead to overestimating flooding risks. The company reportedly did reduce the risk of sewer flooding at the homes of a large number of its customers. It also reduced misreporting likely led to poorly targeted and inefficient mitigative allotments financed by its customers. Misleading risk…