Why do people often misunderstand the concept of risk in decision-making?

People often misunderstand risk due to cognitive biases that skew their perception of probabilities and outcomes. For example, they may overestimate the likelihood of dramatic events, such as terrorist attacks, while underestimating more common risks, like car accidents. This misjudgment can lead to poor decision-making, as individuals may prioritize eliminating less probable risks over addressing more significant threats. Additionally, the illusion of control plays a role, where individuals believe they can manage certain risks better than they actually can, leading to a false sense of security.