Cognitive Bias in Defense Financial Management: A Marine Corps Perspective

Abstract

Cognitive bias can diminish judgment and decision-making in resource management decisions. However, limited cognitive bias research has extended to these decisions in Defense Financial Management (DFM). We conducted a literature review and interviewed senior Marine Corps Financial Managers to examine how biases might affect resource management decisions. We identify some of the ways that cognitive biases can lead to the ineffective allocation of defense resources. We also conducted a literature review on cognitive bias mitigation practices and discuss ways to apply them in the DFM environment. Finally, we provide a practical exercise to expose decision-makers to cognitive bias in DFM by adapting existing cognitive bias exercises and questionnaires.