Decision Making Under Risk and Uncertainty

Start with risk and uncertainty

The mind map Risk and uncertainty introduces risk and reward, including an example of investing in a new business. Use it as a starting point for the terms on this page. Then open the Risk and Uncertainty flashcards to study uncertain events and expected values.

The Risk & Uncertainty mind map looks at projects described as disasters, including cost growth and time slippage. It offers another way to consider risk in a project setting.

Explore decision rules

The decision-making mind map groups choices under certainty, risk and uncertainty. It also lists approaches such as maximax, maximin, minimax regret, the criterion of realism and equally likely outcomes. Follow its branches to see how the approaches are presented.

After the map, use the business analytics flashcards to practice questions on decision-making challenges and approaches. The deck asks how to work out maximax, maximin and minimum regret. Return to the map when you want to compare the terms.

Use the quiz alongside the maps

The quiz asks about decision rules, including rules for multistage decisions and pessimistic decision makers. Try it after looking at the decision-making map and flashcards. Use each question to decide which rule you want to study again, then return to the relevant branch or card.

Continue through the unit

This topic is part of the Decision Making and Problem Solving unit in Business administration and management (incl. project management). The maps on difficult decisions add approaches such as reasoning by analogy, imitation, experimentation and rigorous debate. They offer ways to extend your study beyond the decision rules on this page.

Choose a resource and work through it at your own pace.