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The hidden variable in cyber risk decisions: The decision environment

Published on
March 10, 2026

Whenever anyone asks me for book recommendations, one of my go-tos is Thinking Fast and Slow by Daniel Kahneman. Amongst many achievements, he notably won the Nobel Prize for proving we’re not as rational as we think. That’s a deliberate simplification, but it’s a useful starting point for the purpose of this article.

He sadly passed away at the ripe age of 90 in March 2024. However in summer 2025 The Knowledge Project re-released an excellent interview with him which, after marking as a must-listen many months ago, I finally got around to. It reminded me just how relevant and timeless his work, advice, and frameworks are, both to individuals and to businesses.

Predictably, I can’t help myself but apply it to the world of cyber risk. Here are three of my reflections that I’ve tried to orient as useful for senior leaders who chair or contribute to group decisions about cyber.

Remove the restraining forces

First, stop adding “driving forces”, and start removing “restraining forces”.

Kahneman’s point is not to add more and more “driving forces” to push change (e.g. incentives, training, mandates) but instead to focus on the “restraining forces” that are holding things where they are (e.g. friction, fears, habits, situational barriers).

When I think about the measurement and reporting of cyber risk, this feels very familiar. We spend a lot of time explaining why quantitative measurement and leading indicators are better, but far less time understanding what’s blocking a move away from qualitative, subjective reporting, even when the balance of evidence makes a compelling case that the shift is worth it.

I touched on a number of the underlying concerns at play here in another article last year. They were about credibility, confidence, readiness, consistency, and timing.

For leaders who chair decision forums, the practical question becomes: what is actually stopping the group from trusting a more evidence‑based approach to decision making? I genuinely believe that asking that question more (and the second order questions that arise from it) will help us collectively move our industry on from risk matrices and, as David White aptly puts it, colouring crayons in the board room.

Delay the verdict

Second, delay intuition by forcing decisions to be made dimension by dimension.

Kahneman’s advice is very practical here. It emphasises the importance of breaking a decision into dimensions, assessing each dimension separately, and then, once the picture is complete, making the decision.

My take on this for cyber investment decisions for example, is that those dimensions might include how an initiative reduces risk to key scenarios like ransomware, how it defends against prevalent attacker techniques, what it does for critical business services, or how it supports regulatory expectations.

I think the fundamental objective of Kahneman’s points on this topic are to ensure a decision-making group is given a genuine opportunity to change its mind before early impressions harden into a “position”. If we don’t do this, we risk confirmation bias on a potentially incorrect decision.

Make dissent safe

Finally, protect dissenters, then institutionalise dissent through a pre-mortem.

My final reflection is focused on Kahneman’s comment: “If you’re head of group that makes decisions, then protect the dissenters, because they’re very valuable.”

He makes the point about how hard and costly it can sometimes be to be the person who disagrees. People often do not raise concerns because it is uncomfortable and because it can carry social or career risk. If leaders want better decisions, they need to protect dissenters and make disagreement as painless as possible.

This links nicely to an excellent article by Laura Cristiana Voicu on critical thinking where she writes in a line that stuck with me: “Critical thinking requires a genuine willingness to be wrong. Publicly. In front of people whose opinion you care about.

One useful tool Kahneman referenced was the “pre-mortem”, an idea Gary Klein developed and Kahneman strongly endorsed. The concept is simply to assume it is two years from now, the decision in question has turned into a disaster, and then everyone writes the history of how it failed.

In cyber, that is a strong fit for big bets like a major tooling or programme investment, a significant risk acceptance, a cloud or identity transformation, or an outsourcing decision.

Framed this way, dissent stops being personal and becomes part of the process. Leaders can make it clear that they expect alternative views, not as an obstacle to progress but as a way of stress-testing it.

Closing thought

In conclusion, I don’t think any of this is about finding the perfect method or the perfect model. It’s about creating the conditions where good judgement is more likely: removing the retaining forces that keep you anchored to the status quo, forcing decisions to be made dimension by dimension before a verdict is made, and making it safe to disagree early on, while it is still useful.

Author
James Hanbury
Global Lead Director, Co-founder
James is the co-founder and Global Lead Director of CRI. He has spent over a decade working with cyber and risk teams, helping them bring more structure and clarity to how cyber risk is measured and communicated. James began building the earliest versions of CRI's models back in 2016, using Excel to explore how organisations could approach cyber risk in a more decision-focused way. That work has since grown into a SaaS-enabled capability now used by clients around the world. Based in London, James continues to work closely with CRI's clients and partners, focusing on how to make cyber risk quantification useful, explainable, and easier to adopt in practice.
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