Chris Davies: If fish can't see water, what can't we see?

Bias and noise

clock • 2 min read

Chris Davies applies a behavioural science lens to compliance, assessing what advisers can do to remove partiality and noise from their decisions...

With Daniel Kahneman's co-authored latest book, Noise, we have another instalment for the case of behavioural science in decision making. Kahneman, Cass Sunstein and Oliver Sibony provide the reader with plenty of examples for how subconscious bias (skewed thinking) and ‘noise' (the variability of errors or inaccurate decision making) can cause real problems particularly when it comes to risk management. Two wrongs don't make a right and, when they collude, bias and noise contribute to significant failures in accuracy due to unwanted variability in their decision making. For example, ...

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