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Risk tolerance vpp16

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Some employees are regrettably willing to take risks, as though they believe that they cannot be injured. This talk explores the role that "salience" plays in people's decisions to take risks. Those things that are more obvious and significant from one person's point of view are said to be more salient, and therefore play a greater role in determining the person's behavior. After exploring some of the surprisingly salient factors behind employees' decisions to act unsafely, attendees of this talk will be in a better position to address the challenge of risk tolerance in their organizations.

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Risk tolerance vpp16

  1. 1. Why It Makes Sense to Tolerate Risk Phillip Ragain
  2. 2. © 2014, The RAD Group, LLC. All Rights Reserved. Unauthorized reproduction or distribution, in part or in whole, is forbidden unless permitted in writing by The RAD Group, LLC. Have you ever done something that, when you look back on it, was WAY too risky? The Groundwork
  3. 3. © 2014, The RAD Group, LLC. All Rights Reserved. Unauthorized reproduction or distribution, in part or in whole, is forbidden unless permitted in writing by The RAD Group, LLC. The good news: You’re probably not simply reckless, careless, naive or a “lost cause.” You’re just human! The Groundwork
  4. 4. © 2014, The RAD Group, LLC. All Rights Reserved. Unauthorized reproduction or distribution, in part or in whole, is forbidden unless permitted in writing by The RAD Group, LLC. There are many things that affect people’s Risk Tolerance. ‣ “Upbringing” ‣ Situational Influences ‣ Our Psychology ‣ etc… The Groundwork
  5. 5. © 2014, The RAD Group, LLC. All Rights Reserved. Unauthorized reproduction or distribution, in part or in whole, is forbidden unless permitted in writing by The RAD Group, LLC. The Groundwork When people take risks, it is because it makes sense to do so.
  6. 6. © 2014, The RAD Group, LLC. All Rights Reserved. Unauthorized reproduction or distribution, in part or in whole, is forbidden unless permitted in writing by The RAD Group, LLC. The Groundwork When people take risks, it is because it makes sense to them to do so.
  7. 7. © 2014, The RAD Group, LLC. All Rights Reserved. Unauthorized reproduction or distribution, in part or in whole, is forbidden unless permitted in writing by The RAD Group, LLC. “Local Rationality” What people do makes sense given the context they are in. The Groundwork CONTEXTCONTEXT
  8. 8. © 2014, The RAD Group, LLC. All Rights Reserved. Unauthorized reproduction or distribution, in part or in whole, is forbidden unless permitted in writing by The RAD Group, LLC. The Groundwork
  9. 9. © 2014, The RAD Group, LLC. All Rights Reserved. Unauthorized reproduction or distribution, in part or in whole, is forbidden unless permitted in writing by The RAD Group, LLC. The Groundwork
  10. 10. © 2014, The RAD Group, LLC. All Rights Reserved. Unauthorized reproduction or distribution, in part or in whole, is forbidden unless permitted in writing by The RAD Group, LLC. CONTEXT? Contexts can be obscure. The Groundwork
  11. 11. © 2014, The RAD Group, LLC. All Rights Reserved. Unauthorized reproduction or distribution, in part or in whole, is forbidden unless permitted in writing by The RAD Group, LLC. Contexts can be complex. The Groundwork
  12. 12. © 2014, The RAD Group, LLC. All Rights Reserved. Unauthorized reproduction or distribution, in part or in whole, is forbidden unless permitted in writing by The RAD Group, LLC. The Groundwork “Salience” Not everything in a person’s context carries the same weight.
  13. 13. © 2014, The RAD Group, LLC. All Rights Reserved. Unauthorized reproduction or distribution, in part or in whole, is forbidden unless permitted in writing by The RAD Group, LLC. The feeling of power - without a correlated feeling of responsibility to others - elevates risk tolerance. A Position of Power © 2014, The RAD Group, LLC. All Rights Reserved. Unauthorized reproduction or distribution, in part or in whole, is forbidden unless permitted in writing by The RAD Group, LLC. Surprisingly Salient
  14. 14. © 2014, The RAD Group, LLC. All Rights Reserved. Unauthorized reproduction or distribution, in part or in whole, is forbidden unless permitted in writing by The RAD Group, LLC. The urge to finish a given task without interruption distorts our judgements. The Unit Bias Surprisingly Salient
  15. 15. © 2014, The RAD Group, LLC. All Rights Reserved. Unauthorized reproduction or distribution, in part or in whole, is forbidden unless permitted in writing by The RAD Group, LLC. Obedience to an authority figure can override normal judgement. Authority Pressure Surprisingly Salient ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓
  16. 16. © 2014, The RAD Group, LLC. All Rights Reserved. Unauthorized reproduction or distribution, in part or in whole, is forbidden unless permitted in writing by The RAD Group, LLC. Pressure to produce can make risk less salient…or even invisible. Production Pressure Surprisingly Salient
  17. 17. © 2014, The RAD Group, LLC. All Rights Reserved. Unauthorized reproduction or distribution, in part or in whole, is forbidden unless permitted in writing by The RAD Group, LLC. Working when your body thinks it should be sleeping increases risk tolerance. Sleepiness & Shift Work Surprisingly Salient Z Z Z
  18. 18. © 2014, The RAD Group, LLC. All Rights Reserved. Unauthorized reproduction or distribution, in part or in whole, is forbidden unless permitted in writing by The RAD Group, LLC. A Solution What can we do? Educate People: Recognizing these forces reduces their influence. 1 ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓
  19. 19. © 2014, The RAD Group, LLC. All Rights Reserved. Unauthorized reproduction or distribution, in part or in whole, is forbidden unless permitted in writing by The RAD Group, LLC. A Solution Surprisingly Salient Forces ‣ A Position of Power ‣ The Unit Bias ‣ Authority Pressure ‣ Production Pressure ‣ Sleepiness & Shift Work ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓
  20. 20. © 2014, The RAD Group, LLC. All Rights Reserved. Unauthorized reproduction or distribution, in part or in whole, is forbidden unless permitted in writing by The RAD Group, LLC. A Solution What can we do? Have Candid Conversations: Talk with people about the risks that they take and why. Try to understand their contexts. 2
  21. 21. © 2014, The RAD Group, LLC. All Rights Reserved. Unauthorized reproduction or distribution, in part or in whole, is forbidden unless permitted in writing by The RAD Group, LLC. A Solution Tell Stories: Increase the salience of risk through “vicarious experiences.” 3 What can we do?
  22. 22. Why It Makes Sense to Tolerate Risk Phillip Ragain
  23. 23. Resources for You theradgroup.com/vpp-16 Access Slides Ask Questions Michael Allen 17th @ 11:30 18th @ 2:45 Mike Allen 17th @ 1:45 & 3:00 18th @ 10:00 & 1:15 Ron Ragain 17th @ 11:30 & 1:45 Phillip Ragain 18th @ 1:15 & 2:45

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