
Explanation:
Myopia, also known as nearsightedness, is a cognitive bias that causes individuals to place too much emphasis on short-term, familiar, or recent events while neglecting longer-term or alternative possibilities. In the context of scenario analysis, internal participants may exhibit myopia by focusing narrowly on risks they have personally experienced or that are currently prevalent within the organization. An external expert can help mitigate this bias by introducing a broader perspective, bringing industry-wide insights, and challenging the internal team to consider a wider array of scenarios and long-term horizon risks that they might otherwise overlook.
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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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