by Michael Arbow MBA
Partner, RSD Solutions Inc.
According to a recent study in the Neuroscience journal a lack of sleep leads to overly optimistic decisions and a greater willingness to take on risky behaviours. Brain scans showed that those who experienced broken or shortened sleep had increased activity in the parts of the brain that assess positive outcomes and reduce activity in processing negative results. In other words a tired person is more likely to think the impossible is possible. Sadly according to the report, coffee or exercise will not alter their distorted view. To quote from the report:
"Using a risky decision-making task, we showed that sleep deprivation shifted most persons' bias from avoiding loss to pursuing gain"
We have discussed in out blogs the need to separate out the risk team from the day-to-day (chaotic) operations of a business. Perhaps this is another reason. Of course it will be the risk manager's duty to make sure their team is not over worked and is well rested,... but that may be a hard sell.
For more on this story from the Independent newspaper click on the link:
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