Tag Archives: optimism

Optimism Bias: How Your Half Full Glass Leaves You Vulnerable

Leave a reply

Photo of a woman holding a large happy face sign in front of her face.There is a cognitive phenomenon called the optimism bias that leads humans to think that the likelihood of a negative event is lower than it really is. This is great when we are battling the day-to-day stresses of our lives but not so good when trying to plan for unexpected risks. In this blog post I will explore how the optimism bias can affect risk management.

Tigger or Eeyore

In a recent article for the Nonprofit Risk Management Center, Erin Gloeckner describes different personality types as Tiggers, or people who are always positive and bouncy, and Eeyores, those who are always down and negative. In reality, most of us fall somewhere in between but tend to have an optimism bias. As I have mentioned in previous posts, I tend to be an uber-Tigger and that can get me into trouble when determining the likelihood of failure or disaster. I was once asked to develop potential disaster scenarios for a project so that I could mitigate any risks associated with those scenarios. Try as I might, I could not come up with any realistic scenarios that involved failures. I realized my own bias towards optimism and asked for help from a project member I knew had a negative bias. That person was able to develop many different disaster scenarios and we created risk mitigation plans to counter each of them. True to my world, none of those scenarios ever happened but we were prepared nonetheless.

Business Planning

When managing information, it’s important to have a realistic sense of security. Start with preparing honest answers to these questions:

  • What are the chances of a security breach that leads to leaked confidential information?
  • What are the chances of a natural disaster that affects the operations of my organization?
  • What are the chances that I will lose a key person in my organization, at least temporarily?

It is important to have plans in place to counter the various threats that can happen in the course of doing business. Storms don’t stay away forever and key people don’t stay in one position their whole life. We can lessen the impact of these events by planning for them.

Personal Planning

I have talked about this in past blog posts but I think it is also important to evaluate potential risks in our personal lives. Ask yourself:

  • What are the chances that I could lose my current job?
  • What are the chances that I could suffer health problems?
  • What are the chances that a natural disaster could affect me or my family?

While it is not good to dwell on these scenarios to the point of distraction, it will give you peace of mind to know that you have planned to mitigate risks. These mitigation strategies should include making sure your skills and education are up to date and that you are exercising in order to fend off avoidable health problems. Set aside money to counter any unforeseen financial problems. Just as you plan for business disruptions, you can also plan for personal issues. These plans can help you sleep at night and be a Tigger all day.

Thoughts

If you are interested in learning more about the optimism bias, there is an excellent 2012 TED talk by Talit Sharot that covers the topic. Whether you tend to be an Eeyore or a Tigger, it is important to recognize your biases as you make plans for your business and your life. Do you already know your personal biases? Let me know your thoughts.

Author Kelly BrownAbout Kelly Brown

Kelly Brown is an IT professional and assistant professor of practice for the UO Applied Information Management Master’s Degree Program. He writes about IT and business topics that keep him up at night.

shutterstock_63935509I am a confessed optimist. I am not a realist, nor am I even a plain optimist. I am a flaming optimist. The glass for me is not just half full; it is completely full. Always. I go into every situation with eyes wide open, and I always expect the outcome to be the best. The focus of this blog post is to share my experiences and to show that a positive attitude can have physical and mental health benefits.

Expect the Best

Optimism comes from the Latin word “optimus” meaning “best.” Optimists always expect the best in every situation. It does not necessarily mean that they are perfectionists and get upset when things don’t go well. On the contrary, they are able to deal with adversity objectively, knowing that “this too shall pass.” If you always expect the worst, you will often get the worst. Conversely, if you expect the best, you will receive the best. Some dismiss this as a mind trick, but it does work.

Practice Gratitude

This may seem trivial, but regular practice goes a long way towards developing a positive attitude and optimism. Often, we have a tendency to focus on the negative things in life, but I challenge you to find something, however small, that you are genuinely grateful for. My wife often asks me what color the sky is in my world. My answer is always the same, “It’s blue, it’s always blue!” Even when it is raining, I try to think about the benefits of rain rather than focusing on my own discomfort. (This is not always easy to do when it is pouring). Once you develop a strong position of gratitude, you can then pass it along to others to help them on their journey. This has benefits for you and for others. Optimism is contagious!

Health Benefits

According to a recent article from the Mayo Clinic, researchers are finding the following benefits attributed to optimism and a positive attitude:

  • Increased life span,
  • Lower rates of depression,
  • Lower levels of distress,
  • Greater resistance to the common cold,
  • Better psychological and physical well-being, and
  • Better coping skills during times of stress.

Researchers are finding that a positive attitude leads to better health, which leads to a more positive outlook on life. It is a reinforcing cycle!

Thoughts

Are you an optimist? If not, I would invite you to try it out and see if it doesn’t improve your outlook. Find one thing that you are grateful for and focus on it. Gradually add other things in your life that you are grateful for and soon you will be expecting positive things to come to you. If you are already an optimist, let me know what you do to keep a positive attitude. If you are just starting your journey towards optimism, let me know how it is going! By all means, pass along your positive attitude to others.

About Kelly BrownAuthor Kelly Brown

Kelly Brown is an IT professional, adjunct faculty for the University of Oregon, and academic director of the UO Applied Information Management Master’s Degree Program . He writes about IT and business topics that keep him up at night.