In this risk management keynote, Gerd Gigerenzer talks about how people have misconceptions about the notation of risk and correctly understanding statistics in relation to it.
In the talk, the risk management guru explains the common misunderstandings surrounding risk and how to get over them to be more risk savvy. Gigerenzer states that it is no longer acceptable for people to not know how to deal with risk and uncertainty in the high tech twenty-first century. He believes that everyone can learn to deal with risk -- it's all about asking the question probability of what?
Using the weather forecast as an example, Gigerenzer says that when there is a prediction is 30% chance of rain people can't seem to grasp what the 30% is.
"We deal everyday with risks but we haven't learned how to understand them. And the problem is not simply in the human mind but also in experts who really don't know what the risks are or don't know how to communicate," says Gigerenzer in his risk management keynote.