Are computers better decision makers than humans?  Chris Snijders, a Dutch sociology professor seems to think so.  He’s devised an algorithm for routine decisions that he says out performs humans.  When he tried it out with purchasing managers buying computer equipment and software at over 300 companies the computer did a better job in sticking to the budget, meeting specifications, and achieving on time delivery.

Snijders attributes the human fallibility to our inconsistency in applying knowledge.

People get emotional over decisions involving money and can get overconfident in their ability to read situations.  Such unwitting biases lead to inconsistencies, inefficiencies, and poor legal risk management.  Better knowledge management can therefore reduce a company’s risk profile.

Snijders admits computer modeling is not a total solution for all decision making — but it does sound like a promising compliance tool..

“If all else fails, immortality can always be assured by spectacular error.”  John Kenneth Galbraith.

John Kenneth Galbraith, who passed away on Saturday at age 97 was a prolific writer.  He wrote 33 books and is considered to be one of the most widely read economists of our time.  

When it comes to managing legal risk we can avoid spectacular error by developing legal literacy and applying it wisely.  It’s an investment in business sustainability and in protecting our careers.