Risk Savvy Citizens

In Risk Savvy Gerd Gigerenzer argues for changes to the way that financial systems, healthcare systems, and discourse around public projects operate. He argues that we are too afraid of risk, allow large organizations to profit from misunderstandings of risk, and that our goals are often thwarted by poor conceptions of risk. Becoming risk savvy citizens, he argues, can help us improve our institutions and make real change to move forward in an uncertain world.

“The potential lies in courageous and risk savvy citizens,” writes Gigerenzer.

I think that Gigerenzer is correct to identify the importance of risk savvy citizens. We are more interconnected than we ever have been, and to develop new innovations will require new risks. Many of the institutions we have built today exist to minimize both risk and uncertainty, unintentionally limiting innovation. Moving forward, we will have to develop better relationships toward risk to accept and navigate uncertainty.

A population of risk savvy citizens can help reshape existing institutions, and will have to lean into risk to develop new institutions for the future. This idea was touched on in Bruce Katz and Jeremy Nowak’s book The New Localism where they argue that we need new forms of public private partnerships to manage investment, development, and public asset management. Public agencies, institutions we have relied upon, have trouble managing and accepting risk, even if they are comprised of risk savvy citizens. The solution, Katz and Nowak might suggest, is to reshape institutions so that risk savvy citizens can truly act and respond in ways that successfully manage reasonable risks. Institutions matter, and they need to be reshaped and reformed if our courageous and risk savvy citizens are going to help change the world and solve some of the ills that Gigerenzer highlights.

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