To change the way we think about risk, we must avoid making six mistakes.

1. We think we can manage risk by predicting extreme events.
2. We are convinced that studying the past will help us manage risk.
3. We don’t listen to advice about what we shouldn’t do.
4. We assume that risk can be measured by standard deviation.
5. We don’t appreciate that what’s mathematically equivalent isn’t psychologically so.
6. We are taught that efficiency and maximizing shareholder value don’t tolerate redundancy.

These mistakes that this article points out are very crucial as the previous mistakes mentioned above. I think that to ensure there aren’t mistakes, the risk managements should be carefully reviewed over and over again.

References:https://hbr.org/2009/10/the-six-mistakes-executives-make-in-risk-management