Causes and Consequences of Risk Underestimation

While much research has focused on the overestimation of risk, the underestimation of risk can be equally, if not more, consequential in both personal and societal contexts. This paper explores the cognitive biases, cultural tendencies, institutional structures, and informational deficits that contribute to risk underestimation. Drawing on interdisciplinary evidence from psychology, sociology, economics, and communication studies, this paper analyzes how and why individuals and societies minimize or ignore significant threats. From climate change denial to public health neglect, this phenomenon leads to delayed responses, unpreparedness, and preventable harm. The paper concludes by identifying strategies for enhancing awareness and decision-making in the face of underestimated risks.