misappraisal

noun

mis·​ap·​prais·​al ˌmis-ə-ˈprā-zəl 

plural misappraisals

: the act or an instance of appraising something or someone wrongly : bad or incorrect appraisal

… the misappraisal of risk is one of the most important catalysts of any boom and bust cycle, and … it is complacency that allows the proper assessment of risk to go off course in the first place.

—Axel Merk

Word History

First Known Use

1911, in the meaning defined above