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GOAT Risk Solutions Limited www goatrisksolutions com info goatrisksolutions com June18 2023 Optimism Bias A Double Edged Sword The world held its collective breath as news of the missing 22 foot submersible tourist vessel Titan began to circulate This ill fated quest to explore the infamous RMS Titanic wreckage led to a four day vigil as the personal stories of the five crew members including Ocean Gate s CEO Stockton Rush began to emerge What followed was a stark reminder of the dangerous interplay between cognitive biases and risk management A lesson that CEOs and business leaders worldwide cannot afford to ignore Optimism bias a fascinating cognitive phenomenon wields a profound influence on individuals across diverse domains In the realm of business this bias becomes particularly pronounced among visionary leaders and CEOs whose unwavering determination often fuels innovation resilience and a shared feeling of invincibility crucial for accomplishing business goals outshining competitors and capturing market share Undoubtedly this cognitive trait plays a pivotal role in the success of CEOs and business leaders who must motivate team members earn the trust of stakeholders and align with the optimism prevalent in these spheres However this psychological trait carries a double edged sword leading to the unfortunate consequence of disregarding voices that raise valid concerns propose alternative outcomes or highlight potential risks and unforeseen consequences Regrettably these dissenting voices are often dismissed as troublemakers pessimists or party poopers GOAT Risk Solutions 2023 1 GOAT Riskrn