Sunny Priyan
Mental shortcuts or biases, such as availability or anchoring, can skew risk perception, leading to errors in judgment based on prior experiences or current information.
Emotions like fear or excitement can cloud rational analysis, heavily influencing risk perception and driving either risk-averse or risk-seeking behaviour.
People who overestimate their knowledge or ability to control outcomes tend to make riskier decisions, raising the chances of adverse outcomes.
The way a risk or decision is presented, whether as a gain or loss, can influence perception, with people more likely to take risks when framed as potential gains.
Cultural influences and social norms shape decisions, leading individuals to align their choices and risk perceptions with peer pressure.
Temporal discounting leads people to prioritize immediate gratification over long-term consequences, resulting in riskier decisions with potential future drawbacks.