Some employees are regrettably willing to take risks, as though they believe that they cannot be injured. This talk explores the role that "salience" plays in people's decisions to take risks. Those things that are more obvious and significant from one person's point of view are said to be more salient, and therefore play a greater role in determining the person's behavior. After exploring some of the surprisingly salient factors behind employees' decisions to act unsafely, attendees of this talk will be in a better position to address the challenge of risk tolerance in their organizations.

1. Why It Makes Sense to
Tolerate Risk
Phillip Ragain

2. © 2014, The RAD Group, LLC. All Rights Reserved. Unauthorized reproduction or distribution, in part or in whole, is forbidden unless permitted in writing by The RAD Group, LLC.
Have you ever
done something
that, when you
look back on it,
was WAY too
risky?
The Groundwork

3. © 2014, The RAD Group, LLC. All Rights Reserved. Unauthorized reproduction or distribution, in part or in whole, is forbidden unless permitted in writing by The RAD Group, LLC.
The good news:
You’re probably not simply reckless,
careless, naive or a “lost cause.”
You’re just human!
The Groundwork

4. © 2014, The RAD Group, LLC. All Rights Reserved. Unauthorized reproduction or distribution, in part or in whole, is forbidden unless permitted in writing by The RAD Group, LLC.
There are many things that affect
people’s Risk Tolerance.
‣ “Upbringing”
‣ Situational Influences
‣ Our Psychology
‣ etc…
The Groundwork

5. © 2014, The RAD Group, LLC. All Rights Reserved. Unauthorized reproduction or distribution, in part or in whole, is forbidden unless permitted in writing by The RAD Group, LLC.
The Groundwork
When people take risks, it is
because it makes sense to do so.

6. © 2014, The RAD Group, LLC. All Rights Reserved. Unauthorized reproduction or distribution, in part or in whole, is forbidden unless permitted in writing by The RAD Group, LLC.
The Groundwork
When people take risks, it is
because it makes sense to them to
do so.

7. © 2014, The RAD Group, LLC. All Rights Reserved. Unauthorized reproduction or distribution, in part or in whole, is forbidden unless permitted in writing by The RAD Group, LLC.
“Local Rationality”
What people do makes
sense given the context
they are in.
The Groundwork
CONTEXTCONTEXT

8. © 2014, The RAD Group, LLC. All Rights Reserved. Unauthorized reproduction or distribution, in part or in whole, is forbidden unless permitted in writing by The RAD Group, LLC.
The Groundwork

9. © 2014, The RAD Group, LLC. All Rights Reserved. Unauthorized reproduction or distribution, in part or in whole, is forbidden unless permitted in writing by The RAD Group, LLC.
The Groundwork

10. © 2014, The RAD Group, LLC. All Rights Reserved. Unauthorized reproduction or distribution, in part or in whole, is forbidden unless permitted in writing by The RAD Group, LLC.
CONTEXT?
Contexts can
be obscure.
The Groundwork

11. © 2014, The RAD Group, LLC. All Rights Reserved. Unauthorized reproduction or distribution, in part or in whole, is forbidden unless permitted in writing by The RAD Group, LLC.
Contexts can
be complex.
The Groundwork

12. © 2014, The RAD Group, LLC. All Rights Reserved. Unauthorized reproduction or distribution, in part or in whole, is forbidden unless permitted in writing by The RAD Group, LLC.
The Groundwork
“Salience”
Not everything in a
person’s context
carries the same
weight.

13. © 2014, The RAD Group, LLC. All Rights Reserved. Unauthorized reproduction or distribution, in part or in whole, is forbidden unless permitted in writing by The RAD Group, LLC.
The feeling of power -
without a correlated
feeling of responsibility to
others - elevates risk
tolerance.
A Position of Power
© 2014, The RAD Group, LLC. All Rights Reserved. Unauthorized reproduction or distribution, in part or in whole, is forbidden unless permitted in writing by The RAD Group, LLC.
Surprisingly Salient

14. © 2014, The RAD Group, LLC. All Rights Reserved. Unauthorized reproduction or distribution, in part or in whole, is forbidden unless permitted in writing by The RAD Group, LLC.
The urge to finish a
given task without
interruption distorts
our judgements.
The Unit Bias
Surprisingly Salient

15. © 2014, The RAD Group, LLC. All Rights Reserved. Unauthorized reproduction or distribution, in part or in whole, is forbidden unless permitted in writing by The RAD Group, LLC.
Obedience to an
authority figure can
override normal
judgement.
Authority Pressure
Surprisingly Salient
✓
✓ ✓
✓
✓ ✓
✓
✓ ✓

16. © 2014, The RAD Group, LLC. All Rights Reserved. Unauthorized reproduction or distribution, in part or in whole, is forbidden unless permitted in writing by The RAD Group, LLC.
Pressure to produce
can make risk less
salient…or even
invisible.
Production Pressure
Surprisingly Salient

17. © 2014, The RAD Group, LLC. All Rights Reserved. Unauthorized reproduction or distribution, in part or in whole, is forbidden unless permitted in writing by The RAD Group, LLC.
Working when your
body thinks it should
be sleeping increases
risk tolerance.
Sleepiness & Shift Work
Surprisingly Salient
Z
Z
Z

18. © 2014, The RAD Group, LLC. All Rights Reserved. Unauthorized reproduction or distribution, in part or in whole, is forbidden unless permitted in writing by The RAD Group, LLC.
A Solution
What can we do?
Educate People:
Recognizing these
forces reduces their
influence.
1
✓
✓ ✓
✓
✓ ✓
✓
✓ ✓

19. © 2014, The RAD Group, LLC. All Rights Reserved. Unauthorized reproduction or distribution, in part or in whole, is forbidden unless permitted in writing by The RAD Group, LLC.
A Solution
Surprisingly Salient
Forces
‣ A Position of Power
‣ The Unit Bias
‣ Authority Pressure
‣ Production Pressure
‣ Sleepiness & Shift Work
✓
✓ ✓
✓
✓ ✓
✓
✓ ✓

20. © 2014, The RAD Group, LLC. All Rights Reserved. Unauthorized reproduction or distribution, in part or in whole, is forbidden unless permitted in writing by The RAD Group, LLC.
A Solution
What can we do?
Have Candid Conversations:
Talk with people about the
risks that they take and why.
Try to understand their
contexts.
2

21. © 2014, The RAD Group, LLC. All Rights Reserved. Unauthorized reproduction or distribution, in part or in whole, is forbidden unless permitted in writing by The RAD Group, LLC.
A Solution
Tell Stories:
Increase the salience of
risk through “vicarious
experiences.”
3
What can we do?

22. Why It Makes Sense to
Tolerate Risk
Phillip Ragain

23. Resources for You
theradgroup.com/vpp-16
Access Slides
Ask Questions
Michael Allen
17th @ 11:30
18th @ 2:45
Mike Allen
17th @ 1:45 & 3:00
18th @ 10:00 & 1:15
Ron Ragain
17th @ 11:30 & 1:45
Phillip Ragain
18th @ 1:15 & 2:45