
Explanation:
Myopia, also known as nearsightedness, is a cognitive bias that causes individuals to place too much focus on internal or short-term issues while neglecting broader, long-term, or external risks. During scenario analysis, internal staff may suffer from myopia due to their close involvement with the firm's day-to-day operations. An external expert brings an independent and broader perspective, which is highly effective in mitigating this bias and ensuring a comprehensive assessment of potential scenarios.
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Q.5073 Which of the following is most likely a bias that an external expert can help mitigate during scenario analysis?
A
An excessive focus on scenarios driven by internal causes
B
Myopia
C
Initiation of discussions
D
External loss data
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