What are Heuristics?
Heuristics are mental shortcuts, or rules of thumb, that can help you make decisions quickly and efficiently. Instead of analysing every situation from first principles, heuristics allow you to simplify complex problems by looking for patterns. They can be especially useful in situations with incomplete information, or when time is limited, however using them comes with its own risk. Why Are Heuristics Useful in Risk Management? In risk management you are by definition dealing with uncertainty, and often with limited data and time to analyse. Heuristics can help by: ...