Risky Business Decision Theory and Implications for Health & Safety Petroleum Safety Conference - 2014; Ryan Campbell, B.Sc., CRSP Behaviour Based Safety ✤ Old model, Bird published in 1986 ✤ Stop, Think, Act ✤ New ideas on how we think behaviour noun the way in which one acts or conducts oneself, esp. toward others. • the way in which an animal or person acts in response to a particular situation or stimulus. decision noun a conclusion or resolution reached after consideration. • the action or process of deciding something or of resolving a question. Old Hardware, New Software ✤ Behaviourally modern humans evolved ~50,000 years ago ✤ Industrial revolution 1760-1840 ✤ Old brains making decisions in new environments 01 Old Hardware, New Software ✤ It’s so easy a caveman can do it ✤ Our brains are still making decisions like we’re hunters and gatherers ✤ What worked 3,000 years ago might not work today 01 System 1: listen to your gut ✤ Fast ✤ Low effort ✤ Takes shortcuts ✤ No voluntary control System 2: stop and think ✤ Time intensive ✤ High effort ✤ “Conscious” thinking ✤ Logical & analytical Decision = Evaluation of outcomes & probabilities of occurrence and choosing between them ✤ Outcomes have subjective values (e.g. gain, loss, benefit, injury) ✤ Probabilities are determined and weighted ✤ Old brains making decisions in new environments Decision: a choice between different possible actions ✤ Actions have outcomes ✤ Outcomes have subjective values ✤ Outcomes have probabilities ✤ A purely rationale choice would only be a function of value and probability 01 Problems with Probabilities Consider the following choice: a) 0.1% chance to win $5,000 b) $5 for sure 01 Problems with Probabilities Consider the following choice: a) 0.1% chance to win $5,000 (72%) b) $5 for sure (28%) Kahneman and Tversky, 1979 01 Problems with Probabilities Consider the following choice: a) 0.1% chance to lose $5,000 b) lose $5 for sure Kahneman and Tversky, 1979 01 Problems with Probabilities Consider the following choice: a) 0.1% chance to lose $5,000 (17%) b) lose $5 for sure (83%) Kahneman and Tversky, 1979 01 Problems with Probabilities ✤ In H&S, probabilities are mainly subjective ✤ We weight probabilities during decision making ✤ Extremely low and high probabilities are overweighted ✤ Low to moderate probabilities are underweighted 01 Problems with Probabilities ✤ Probabilities are impacted by our ability to recall similar events - Availability Bias ✤ Vivid and catastrophic events influence us more ✤ Prime workers with incidents to influence their decision weights 01 Kahneman and Tversky, 1979 01 Loss Aversion Consider the following choice: a) 80% chance to win $4,000 b) $3,000 for sure N=95 Kahneman and Tversky, 1979 Kahneman and Tversky, 1979 01 Loss Aversion Consider the following choice: a) 80% chance to win $4,000 (20%) b) $3,000 for sure (80%) Risk AVERSE Kahneman and Tversky, 1979 Kahneman and Tversky, 1979 01 Loss Aversion Consider the following choice: a) 80% chance to lose $4,000 b) Lose $3,000 for sure N=95 Kahneman and Tversky, 1979 Kahneman and Tversky, 1979 01 Loss Aversion Consider the following choice: a) 80% chance to lose $4,000 (92%) b) Lose $3,000 for sure (8%) Risk SEEKING Kahneman and Tversky, 1979 Kahneman and Tversky, 1979 01 Loss Aversion ✤ We don’t like losing ✤ It is the change, the idea of gaining or losing that matters, not the end state ✤ The safe decision needs to be believed to be the gain Kahneman and Tversky, 1979 ✤ Additional costs are sure losses compared to increased likelihood of incidents 01 Framing ✤ A decision box ✤ Physiology ✤ Emotions ✤ Fatigue ✤ How WE present decisions 01 There has been an outbreak of a deadly disease. Choose one of the following treatment options: If Program A is adopted, 200 people will be saved. If Program B is adopted, there is a 1/3 chance that 600 people will be saved and a 2/3 chance that no people will be saved Tversky and Kahneman, 1981 01 There has been an outbreak of a deadly disease. Choose one of the following treatment options: If Program A is adopted, 200 people will be saved. (72%) If Program B is adopted, there is a 1/3 chance that 600 people will be saved and a 2/3 chance that no people will be saved (28%) N=152 Tversky and Kahneman, 1981 01 There has been an outbreak of a deadly disease. Choose one of the following treatment options: If Program C is adopted, 400 people will die. If Program D is adopted, there is a 1/3 chance that nobody will die and a 2/3 chance that 600 people will die. Tversky and Kahneman, 1981 01 There has been an outbreak of a deadly disease. Choose one of the following treatment options: If Program C is adopted, 400 people will die. (22%) If Program D is adopted, there is a 1/3 chance that nobody will die and a 2/3 chance that 600 people will die. (78%) N=152 Tversky and Kahneman, 1981 01 Framing ✤ It changes everything ✤ Be depressing ✤ Play to emotions ✤ Use real numbers and not percentages ✤ Schedule high risk work for after a break 01 Nudging ✤ Nudges gently push people to better (safer) decisions ✤ Not widely used, yet ✤ Organization and site-specific ✤ People still have free choice, but the choice is structured 01 Nudging ✤ The most famous nudge of them all…. 01 Maybe more relevant…. ✤ Lake Shore Drive, Chicago ✤ Signs, straightening, nothing prevented accidents. ✤ Post Nudge: 36% fewer crashes ✤ Influence perception, cause real change 01 Health & Safety - Moving Forward ✤ Behaviour based safety is a beginning, not an end ✤ Decision theory; psychology; physiology, etc. All are important to help ensure worker safety consilience noun agreement between the approaches to a topic of different academic subjects, esp. science and the humanities. “Human error is not the cause but the effect. Whatever the label (loss of situational awareness, inadequate resources, even complacency) human error can never be the conclusion of your investigation. It is the starting point.” –Sidney Dekker
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