Systemic and Systematic Risk Management

2 Thinking

Thinking is a major component of risk management because it is the most important function used in identifying, mitigating and preventing risks. This chapter discusses thinking, systems thinking, the nine holistic thinking perspectives (HTPs) and the benefits of going beyond systems thinking to reduce risk. In particular, the chapter discusses:

1. Judgement and creativity in Section 2.1.

2. Critical thinking in Section 2.2.

3. Systems thinking in Section 2.4.

4. Going beyond systems thinking in Section 2.5.

5. Using the HTPs to perceive systems in Section 2.6.

Thinking is:

• The action that underlies decision-making (Section 5.1.5.1) and problem-solving (Section 5.1.6.1).

• A cognitive act performed by the brain.

• Something that apparently most ...