A small fragment from the summary «Risk Savvy: How to Make Good Decisions» (Gerd Gigerenzer)

The book talks about what we think of risky situations and what they really are. It explains that risk is basically being aware of all the possible options and the chances of each one and having all the information needed. All the methods that are given in it are aimed at helping you to analyze and estimate your risk and as a result, make the best decision possible. It also compares risk to what uncertainty is and based on the difference between them shows how to pick the option you actually need.

The ability to take risks is necessary for those who want to innovate and to cope with the difficulties of choice in a variety of situations. However, when making important decisions, we often have to deal with the statistical data, the meaning of which we do not fully understand, and, therefore, rely on the opinion of experts - politicians, financial advisors, doctors. But what if they are not quite truly evaluate existing risks? Are there any effective rules that can help us choose the right partner?

Every single step we make in our life is fulfilled with choices. These choices may be different, but they all mean something to us. You might be deciding what you want for breakfast or whom you want to spend your life with, it doesn’t matter as you still need to make a choice and it might not be that simple. That is why one needs to know how to do it. While deciding, we may face a lot of challenges they might be connected with lack of information or even with the absence of options you may choose from.

The information you are going to learn will help in avoiding all the hidden dangers of your choice. You will see that very often we mistakenly think that uncertainty is a risk and that risk is uncertainty, or that certainty is a risk and vice versa. That is why you need to learn which one is what and what to do when you face one of them.

You can read the whole «Risk Savvy: How to Make Good Decisions» (online)  here.