Over optimism can lead to several risks in a business setting:
Poor Decision-Making: Leaders may make strategic decisions based on unrealistic assumptions, leading to flawed execution. Resource Misallocation: Overestimating positive outcomes can result in the misallocation of resources, such as time, money, and personnel. Underestimating Risks: Leaders may fail to adequately consider potential risks, leading to unpreparedness in adverse situations. Team Morale: Persistent over optimism followed by unmet expectations can erode team morale and trust in leadership.