Date: 2024-06-21 Tags: Framework Link: /article/defining-the-framework/

Defining The Framework

/ I outlined on the home page and in these articles this framework of four components: judgment, decision making, intuition, and risk management. Let’s try to better define these components.

Judgment

Judgment: The ability to make considered decisions or come to sensible conclusions, often involving understanding the implications of actions and mapping them to long-term outcomes.

Decision Making

Decision Making: The process of selecting a course of action from multiple alternatives, based on available information, preferences, and desired outcomes.

Intuition

Intuition: The ability to understand or know something immediately, without the need for conscious reasoning; often based on experiential knowledge and instinctive feeling. It involves knowing the importance of quantitative and qualitative factors in any given situation.

Risk Management

Risk Management: The process of understanding the balance of risk and reward by evaluating potential upsides and downsides. This involves assessing both quantitative (numerical, measurable) and qualitative (descriptive, subjective) inputs and their respective mappings to outputs.

Additional Framework Concepts

These are additional ideas which surround the main four parts above:

• Credibility: The quality of being trusted and believed in, built through consistent reliability, integrity, and demonstrated competence.
• Pattern Recognition: The ability to identify and understand recurring trends or regularities in data or behavior. A combination of intellect and iterations contributes to pattern recognition, which in turn enhances judgment.
• Data Processing: The process of gathering and interpreting both certain (logical, clinical, quantitative) and uncertain (emotional, qualitative, subjective) data. This includes understanding the boundary conditions and key points, leading to well-informed conclusions and actionable outputs.
• Intellect: The capacity for knowledge, understanding, and reasoning. The level of intellect sets a lower and upper bound on one’s ability to effectively exercise the framework components.