Understanding Risk

I’ve crossed paths with John Kay on a number of occasions, I guess this is because we often have approached things in a similar manner. I don’t know him as such, but have followed his work , attended some of his lectures and spoken to him. I thought this piece I read in a weekend FT recently was a decent thought provoking peice. It tells you a lot about the way people approach risk. It sums up quite nicely how I think and how I look at risk and how people are often fooled into the wrong decision.

https://www.ft.com/cms/s/2/0632d418-67fc-11de-848a-00144feabdc0.html

It reminded me of a converstaion I had recently with a friend I met in the rush hour in London. “Shall we catch a cab?” he asked. To which I responded: –

“If we go on the Jubilee line theres a 70% chance we will probably have to wait for two trains I guess, or we could go south on the Bakerloo and its 90% certain to be clear, catch the Northern Line north and walk. If we took the Taxi it will cost extra but we can be sure of getting their on time. We’ll catch the taxi”. He laughed and said, “That’s you all over!” I think he was looking for a yes or no.

Category: Using Bet Angel