Cognitive risk / James Bone and Jessie Lee.

Format:

Book

Author/Creator:

Bone, James (Risk advisory consultant), author.

Lee, Jessie, author.

Series:

Security, Audit and Leadership Series

Language:

English

Subjects (All):

Organizational behavior.

Risk management.

Subconsciousness.

Physical Description:

1 online resource (248 pages)

Edition:

First edition.

Place of Publication:

Boca Raton, FL : CRC Press, [2023]

Summary:

"Cognitive Risk is a book about the least understood, but most pervasive risk to mankind - cognitive risks. Cognitive risks are subconscious and unconscious influence factors on human decision-making: heuristics and biases. To understand the scope of cognitive risk we look at case studies, corporate and organizational failure and the science that explains why we systemically make errors in judgment and repeat the same errors. Cognitive risk takes a multidisciplinary and pedestrian stroll through behavioral science with a light touch using stories to explain why we consistently make cognitive errors that not only increase risks, but also simultaneously fails to recognize these errors; in ourselves or our organization. This science has deep roots in organizational behavior, psychology, human factors, cognitive science, and behavioral science all influenced by the classic philosophers and enabled through advanced analytics and artificial intelligence. The point of the book is simple. Humans persist with bounded rationality, but as the speed of information, data, money, and life accelerates we will need the right tools to not only keep pace, but to survive. Finally, the book closes with a foundational solution. A cognitive risk framework for enterprise risk management and cyber security. There are five pillars in a cognitive risk framework with five levels of maturity, yet there is no prescribed maturity level. It is more a journey of different paths. Each organization will pursue its own path, but the goal is the same - minimize the errors that could have been avoided. We explain why conversations about risks are hard to discuss and why we systematically ignore the aggregation of these risks hidden in collective decision-making in an organization. The cognitive risk framework is a framework designed to explore the two most complex risks organizations face: Uncertainty and Decision-Making under uncertainty. The first pillar is Cognitive Governance. A structured approached for institutionalizing rational decision-making across the enterprise. Each pillar is complimentary in a succession of continuous learning. There is no endpoint because it evolves with technology. Enterprise risk is a team effort in intelligence grounded in good decision-making. We close with a call for designers of risk solutions enabled by the right technology and nurtured by collaboration. We hope you enjoy the book with this context"-- Provided by publisher.

Contents:

Cover

Half Title

Series Page

Title Page

Copyright Page

Table of Contents

About the Authors

Introduction

Chapter 1 Reimagining the organization: Homo periculum (Human risk)

Confusion in enterprise risk practice

Cognitive map: the unintentional consequences of a global ERM framework

Decoding the failure in audit and confusion in enterprise risk management

Notes

Chapter 2 Complexity in risk and risk perceptions

The science of risk versus subjectively defined risks

Waste in subjectively defined risk practice

Cognition - blind spots in risk discovery

Chapter 3 A matrix of risk governance - organizational behavior

Enterprise risk governance in review

Enterprise-wide risk management

The emergence of enterprise-wide risk management

Structural impediments to advancements in corporate governance and enterprise-wide risk management

Matrix of board governance models

Collective

Governing boards

Working boards

Advisory boards

Managing boards/executive boards

Carver board governance model

Cortex board governance model

Consensus board governance model

Competency board governance model

Chapter 4 Incorporating human risk factors into organizational performance

Case study - Yahoo and Marissa Mayer

Yahoo! board

Cognitive map: decision-making, governance, and leadership

Decoding the failure at Yahoo and board governance

Chapter 5 How emotions mislead decision-makers

Choice Theory

London "Whale" trader

The findings of the Whale trade loss

A failure to raise red flags or escalate risks

What changed at JPMorgan Chase?

Cognitive map of the JPMorgan Chase Whale trade

Lessons for industry

Before you make that big decision - a template for decision hygiene

Constructive dissent

Promoting constructive conflict.

Conflict resolution should be formally organized to make clear how to do it well: Ground rules

Decision audits

Chapter 6 Cognitive readiness - risk-solution designers

Chapter 7 The human element

Human element in the workplace

Cognitive map: John Malone, the consummate deal-maker

Decoding the miscalculation by Jeff Zucker at CNN

Chapter 8 Cognitive risk governance: Advanced ERM and cybersecurity

Cognitive governance

Simple example

Intentional control design

A fundamental approach to reduce risk

Achieving resiliency

The science of cognitive control

Cybersecurity and enterprise risk management - asymmetric risk

Human factors and socio-technical risk

Cognitive risk mitigation - bias and noise: the fifth pillar

Additional References.

Notes:

Includes bibliographical references and index.

Description based on print version record.

ISBN:

9781003189657

1003189652

9781000825114

1000825116

9781000825145

1000825140

OCLC:

1373984119