Option 1 is the correct answer.

• Status Quo Trap - This is the tendency to maintain things as they are, even when that may be significantly less than optimal. It's dangerous in cultures/organizations where sins of commission are punished more than sins of omission.
• Sunk cost Trap - It refers to a tendency for people to irrationally follow through on an activity that is not meeting their expectations. This is because of the time and/or money they have already invested.
• Prudence Trap - The overconfidence trap refers to the tendency that individuals overestimate their ability to predict future events. The prudence trap takes the form of overcautiousness, or prudence: When faced with high-stakes decisions, we tend to adjust our estimates or forecasts “just to be on the safe side”.
• Anchoring Trap - Anchoring can occur when an individual or group latches onto the first information they encounter about a decision. A leader of a group may unintentionally anchor a group's thinking by presenting their opinion or analysis first in a decision-making process.
• Loss Aversion Bias - It is a cognitive phenomenon where a person would be affected more by the loss than by the gain i.e., in economic terms the fear of losing money is greater than gaining money more than the amount that might be lost so therefore, a bias is present to averse the loss first.