Reducing risk in business and life is a goal for many of us, but how can we effectively assess risk in a world where everyone's perceptions are so different?

In this course, you will explore risk perception, which describes how each person views and measures the nature and severity of danger. Unlike the numerical depiction of risks, risk perception is influenced by personal experiences, mental activities, context, and inherent personality traits. You will discuss the effects of risk perception on risk evaluation and decision making. You will then explore models such as expected utility, bounded rationality, and prospect theory, giving you a foundation in the elements of risk perception. Finally, you will investigate cognitive shortcuts and biases, including the availability heuristic, anchoring and adjustment, confirmation bias, and overconfidence, and determine their repercussions on behavior. These skills will give you the tools to examine the risk perceptions of various stakeholders, address cognitive biases, and identify suitable models for decision making under uncertainty. By the end of this course, you will be equipped with the methods and insights necessary to effectively evaluate and manage risks, even in complicated situations.

You are required to have completed the following courses or have equivalent experience before taking this course:

  • Risk Analysis Foundations
  • Risk Evaluation
  • Risk Modeling
 

How It Works

Course Length
3 weeks

Effort
8 to 10 hours of study per week

Format
100% online, instructor-led
  • Risk managers and analysts
  • Finance and insurance professionals
  • Project managers
  • Supply chain managers
  • Computer and information security engineers
  • Software developers
  • Engineers
  • Executives
  • Professionals across industries interested in understanding risk management
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