A Credit Manager’s Worst Enemy? Their Brain. How to Recognize and Avoid Typical Cognitive Biases in Credit Decisions

Managing energy credit entails decision making under risk and uncertainty. This is challenging because our brain often re-structures choices irrationally (cognitive biases). Behavioral science offers insight into biases and ways to reduce their impact. Using applied examples, this presentation offers guidance on when we are susceptible to biases (like framing, confirmation, recency, et al.), underlying causes (selective attention, memory, heuristic processing, et al.) and how to counteract these biases.

1.5 hrs CPE; 1.5 hrs CE - Finance

Objectives: Understanding the cognitive biases that affect credit decisions and how to reduce their impact.