What Coronavirus Tells Us About Risk

As I sit down to write this post I’ve just received an email from a weekly design blog I subscribe to.

This edition is titled , alarmingly, ‘Pandemic Prep’.

It begins “We are interrupting our regularly scheduled newsletter format and rhythm to advise our clients and subscribers to prepare for the possible impacts of the coronavirus”.

Now I don’t know about you, but when seeking advice about pandemics I might look to the NHS or the World Health Organisation but I’m not sure service designers, innovation labs or bloggers would be my go-to source.

At the time of writing COVID-19 has led to approximately 3,000 deaths reported worldwide.

Deaths from regular flu on the other hand are somewhere between 291,000 to 646,000 deaths – every year.

Coronavirus is extremely serious and could yet reach pandemic levels –  but it is also a  good illustration of how we can overestimate personal risk. UPDATE 4/3/20: The virus has killed about 3.4% of confirmed cases globally. The seasonal flu’s fatality rate is below 1%

That said , why are people worrying about receiving post from asian countries , or whether you can catch the virus from beer, or even choosing not to order food from chinese takeaways?

According to Dr Ann Bostrom,  the mind has its own – entirely non-evidenced – ways of measuring danger. And the coronavirus hits nearly every cognitive trigger we have.

Paul Slovic, a University of Oregon psychologist who helped pioneer modern risk psychology, speaking to The New York Times, helps explain what is going on in our minds here.

When we encounter a potential risk, our brains do a quick search for past experiences with it. If it can easily pull up multiple alarming memories, then our brain concludes the danger is high. However it often fails to assess whether those memories are truly representative.

“A classic example is airplane crashes. If two happen in quick succession, flying suddenly feels scarier — even if your conscious mind knows that those crashes are a statistical aberration with little bearing on the safety of your next flight. But if you then take a few flights and nothing goes wrong, your brain will most likely start telling you again that flying is safe.”

When it comes to the coronavirus, Dr. Slovic says, it’s as if people are experiencing one report after another of planes crashing.

This week we’ve launched the new Bromford Lab Podcast and in the first edition we interview Vicky Holloway and Mitch Harrington exploring the relationship between risk management and innovation – and our propensity to sometimes see risk in the wrong places.

Many of our organisations, we know, are risk averse and constrain innovation. The culture is superbly designed to repel anything new or mysterious.

There are two main reasons for why we over emphasise risk:

We are scared of making mistakes

Failure is rarely promoted or even talked about in organisations. This can breed a culture where there is a fear of failure.

Existing in a culture like this will promote risk aversion as once colleagues are fearful about something they will tend to overestimate the likelihood of things going wrong. Research show that fearful individuals overestimate the danger associated with their feared objects or situations.

In the same way as my fear of spiders leads me to overestimate the ability for a spider to harm me, an organisation whose biggest fear is negative media attention will tend to overestimate the reputational damage of trying out a new service or project.

Successful innovation however requires us to fail more often, and to get better at how we fail.

Arguably it’s not fear of failure we need to tackle but fear itself. How does fear manifest itself where you work? What are you frightened of and what is it preventing you from doing?

No-one ever gets fired for exaggerating

The second reason organisations can overestimate risk is there are few negative consequences for estimating risk too highly.

Underestimating the risk of something bad happening has seen organisations go under and many people lose their jobs, but no-one has ever been sacked for over-estimation.

In 2002 , the Guardian predicted that the world would face famine in just 10 years , and a few years later the UK Prime Minister went a step further and said we had only 50 days to save the planet.

Arguably these are just well meaning attempts at highlighting a serious problem that also illustrates how hopeless we are at predicting the future. However a climate of fear is never a good climate for clear eyed problem definition.

This is why fear of failure should not go unchallenged, as it ultimately becomes debilitating and either stops you innovating or leads you to make bad choices.

As Vicky says in our podcastwe are all risk managers and generally we do it very well. We manage risk everyday in our personal lives and we largely make the right choices.

We need to look for risk in the right places and make intelligent assumptions, constantly challenging ourselves to seek out new experiences and solve problems.

The future requires us to be cautious , yes, but also to be a lot less fearful.


 

Labcast , the new podcast from Bromford Lab , will feature special guests discussing the innovation and design challenges of our day, the big ideas and the bad ideas. 

WhatsApp Image 2020-02-28 at 12.47.25

It’s available now. 

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Featured Photo by Hello I’m Nik 🍌 on Unsplash

Published by

Paul Taylor

I’m a facilitator, innovator and designer. I work with organisations to identify problems and solve them in ways that combine creativity with practical implementation. I have a track record in project delivery and service change that crosses all disciplines and has resulted in millions of pounds in business benefits. This work has resulted in numerous acknowledgements and awards. In 2013 I established Bromford Lab as a new way for the organisation to embrace challenge and adopt a ‘fast fail’ approach to open innovation. Nearly everything the Lab works on is openly accessible at www.bromfordlab.com. I'm a regular contributor to forums , think-tanks , and research reports and a speaker or advisor at conferences and events.

6 thoughts on “What Coronavirus Tells Us About Risk

  1. Hi Paul. Just a thought from someone who understands the science but still doesn’t believe planes can fly unless I stay awake.
    The way risk affects people concerns me. The CIH report showed that HAs are excluding people on low incomes become they are deemed to high a risk. This means they are excluding the very people we were set up to help. The justification given is that we don’t want to set up people to fail. After a lifetime in housing I’m aware that yes some will fail but the majority won’t because their home is important to them. The financial risk of failure if it happens is much less than the risks involved in a new development. I will continue to challenge the sector on this but I do wonder how it has come about?

    1. This is a really good point Tom and goes to the heart of this issue. In the podcast Vicky talks about how even in ‘risky’ situations the controls and mitigations you put around something can turn it into an opportunity. In your example even if there is a risk around affordability imagine the positive impact on the individual and their family if they are given the chance and make the tenancy succeed!

      I agree with you that this though is an example of ‘looking for risk in the wrong places’ as the financial risk of failure here is nothing compared to the social impact of refusing someone a home.

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