Week 5 discussion question risk perception please

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Week 5 Discussion Question "Risk Perception" Please respond to the following: Using the information presented in “Common Influences on Risk Perception” Figure 6-3 (Hillson and Simon text), determine the conscious factors, subconscious factors, and affective factors for this project. Examine how awareness of such factors influences the decision of hiring outside vendors. In addition, analyze how the stated factors help improve the overall facilitation and effectiveness of the risk management. Conscious factors- visible and measurable characteristics of a particular risky situation, based on rational assessment. Situational factors are also taken into account whether anything similar was done before,
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the degree to which we have control of the situation (manageability), or how soon the situation is expected to affect us (proximity). Subconscious factors- these include heuristics and other sources of cognitive bias. Heuristics are mental shortcuts based on our previous experience. Some heuristics help us to reach an appropriate position quickly, while others can be misleading. Unfortunately, because heuristics are subconscious, their influence is often hidden, and they can be a significant source of bias. Common heuristics include memory of significant events (availability), or the conviction that we already know the right answer Affective factors- these are gut level visceral feelings and emotions which tend to rise up automatically or instinctively in a situation and influence how we react. Fear, excitement or attraction can lead us to adopt risk attitudes which a more rational assessment might not consider. These factors influence the decision of hiring outside vendors in several ways. Reviewing the aspects of the different factors allows you to analyze an outside vendor fairly and determine if this will be the best fit for your organization. It will also eliminate any possible biases and allow for accurate analysis of what the vendor can provide and what you are looking for. Outsourcing can save time and resources if done correctly. Using the listed factors can play a significant role in the decision making process. Week 5 Response Hi Diedra, You bring up some valid points regarding the outsourced vendors. Do you feel or have you experienced vendors that are outsourced seemed to be difficult to work with or have any issues with delivery of promised products or services? Especially regarding IT services, I have noticed that the language barrier sometime presents problems and frustrates your customer base. Yes, there may be a significant cost savings but is it worst customer dissatisfaction or possibly the loss of clientele? What are your thoughts? Thanks Diedra- you actually confirmed my stance and experience on outsourcing as well. Companies mainly only seem to look at the cost benefit versus the customer satisfaction rate and overall experience.
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