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The financial crisis of 2008 demonstrated the flaw in a bottom-up detailed approach to calculating risk. There are too many individual judgments that can be biased. Banks and bank regulators instead use a rule of thumb that bank capital should be 8-10 percent of the balance sheet. That is, managers rely on.

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People often rely on different things. The managers in the above scenario rely on heuristic.

What is a heuristic approach?

A heuristic can also be said to be an heuristic technique. This is known to be a kind of an approach that is used for problem-solving.

Here, practical method or different shortcuts is used so as to proffer or give solutions that sometimes is not  optimal but said to be sufficient due to the limited deadline of action.

See options below

A. rational decision making

B. a heuristic.

C. intuitive decision making

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