Why do we seek certainty in risky situations?
Zero Risk Bias
, explained.What is the Zero Risk Bias?
Zero risk bias relates to our preference for absolute certainty. We tend to opt for situations where we can completely eliminate risk, seeking solace in the figure of 0%, over alternatives that may actually offer greater risk reduction.
Where it occurs
Have you ever bought an insurance policy for something that you felt was close to impossible? We know that these hypotheticals are highly unlikely, such as needing surgery in a foreign country, but the thought of such an event can be deeply unsettling. Although the policy might not be worth the premium we pay, part of what we’re buying is the peace of mind in knowing we’ve eliminated the potential risk.
People are not calculators, and most do not consciously deliberate the exact probabilities of events. Instead, they often gauge a prospect by how they feel about it. Even a 1% chance of disaster can loom over our conscience, and eschewing such a minute probability and securing that 0% can be a favorable outcome. We tend to prefer certainty, closure, and security, all manifest in zero risk bias. This bias can be found at work across numerous contexts, including making decisions about financial products, assessing the real estate market, and even deciding what to do with hazardous waste.
However, everyone is unique, and some people thrive on taking risks or don’t see the point in investing time or money to eliminate a risk they don’t believe is likely to occur. Personal factors like these make a significant impact on how much an individual will be affected by this bias.
