Understanding Risk as a Budget
This is your brain on risk.
Our human brain does not understand risk effectively. We have to work past a number of internal hurdles to get ourselves to correctly assess the risks we’re taking as we live our lives these days. Drawing an analogy between your household budget and a risk budget is one good way of helping your brain. This video introduces that concept and I’ll go further with it in future videos and update this post as I do.
An NPR piece on the same topic
In a bit of synchronicity NPR just released a story that also discussed risk.
https://www.npr.org/2020/12/02/941610810/how-people-decide-about-the-risks-involving-the-coronavirus
To start risk budgeting
The following website is a good place to calibrate your ideas of risk budgeting and to get a sense of what your activities look like with respect to. your particular budget.