Humans are programmed with innate behavioral biases to help our instinctive survival. When faced with vast amounts of information and stimuli which must be comprehended in a limited time frame, our minds resort to mental models shaped by our environment and upbringing. Mental models are shortcuts that allow us to navigate the plethora of data we are challenged with processing at any given moment. However, certain behavioral biases have downsides which can lead to irrational decision making, thus impacting supply chain planning and operational costs.

What is it about risk aversion and uncertainty that can leave us feeling empty and uneasy? Uncertainty is the guest we’d rather not invite out to team lunch, the one we might avoid chatting with over water cooler talk, or the call we let go straight to voicemail. There is a natural tendency to avoid the unknown for fear of the unfamiliar or complex outcomes, yet uncertainty is an inevitable reality of everyday business.