June 14, 2021
Human judgement can be problematic. Daniel Kahneman examines human judgement and its role in a variety of industries in his new book Noise. While discussing underwriting in the insurance industry, Kahneman highlights variability, diversity, “the illusion of agreement,” and consensus as potentially detrimental to the bottom line. In other fields such as foster care, the prison system, or medicine the impact of noise can be life threatening. Ultimately, decision hygiene and noise audits are recommended across all industries and organizations.