Essay on When Making Decisions Under Risk Or Uncertainty?

Essay on When Making Decisions Under Risk Or Uncertainty?

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In order for leaders to make decisions under risk or uncertainty, they need think about the risk involve when making their decisions. There are certain simple rules that leaders should think about when making decisions that have levels of risk and uncertainty. Levels of risk happen when a leader has to reach a decision where the result is unknown. With circumstances of risk, the leader will create a list with all potential results and give likelihoods to each result. Uncertainty is when a leader is not able to come up with a list that contains all potential outcomes or they simply are not able to give probabilities to those outcomes. As stated in the Holy Bible, Ecclesiastes 11:1-3, “Cast your bread upon the waters, for you will find it after many days. Give a portion to seven, or even to eight, for you know not what disaster may happen on earth. If the clouds are full of rain, they empty themselves on the earth, and if a tree falls to the south or to the north, in the place where the tree falls, there it will lie.” In this paper I will discuss the decision making rules associated w...

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