Risk-Taking
Eli Lilly and Company
Alpheus Bingham
21 July 2000

7/19/00

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Table of Contents

Risk-Taking
Eli Lilly and Company
Alpheus Bingham
21 July 2000

Risk, per Rupp Insurance Glossary

Risk, per Gommes, SD Dimensions

Risk, per Fleet Online Banking

Risk, per Prehospital and Disaster Medicine

Risk, per www.stl.nps.navy.mil/~josmund/SWmgmt9/sld002.htm

Competing Conceptions of Risk, Paul Thompson and Wesley Dean, Texas A&M

Risk-Taking

Risk-Taking

Dealing with uncertainty

How does one imagine the future?

Stuff may ride on a carrier wave...

What's stuff ?

Enough math...

Mean Management

Variance Management

Skewness Management

Cognitive Traps

Reference Points

Reference Points

Reference Points, 167 MD, NEJM

Yardsticks

Yardsticks, ~500 managers

Confidence

Overconfidence, n秈, ə% 0,1 wrong

Descriptors

Sampling Evidence

Local Representativeness

Local Representativeness

Anchors

Anchors

Anchors

Anchors, irrelevant

A Strategy for playing the Indiana Lottery

Taking credit,
taking blame·

Taking stands

Experience is mandatory; learning is optional

Claiming credit or Îexplainingâ

Claiming credit or Îexplainingâ

Randomness

Our Innate Probabilistic Skill

Avoiding Îblameâ

On Leadership: Fear of Failure

Risk-Taking at Lilly

Colin Powell: Asking Permission

Colin Powell: Go with your gut

On Leadership: Fear of Failure

On Leadership: Exploit Ambiguity and Discontinuity

Alfred Hitchcock

On Leadership: Resolve and Decisiveness

Indecisiveness

Either Oars

Leading others to Risk

Be WRONG!

Ways of being wrong

Alpha and Beta Errors

Alpha-Beta Leadership

Risk-Taking

Understanding Uncertainty

Cognitive Traps

Experience is mandatory;
learning is optional

Leadership and Taking Stands

On Leadership: Place Your Bets

Author: Alpheus Bingham