Risks in decision making - uncertainties, types and characteristics

Abstract

The decision-making process reflects not only the consecutive approaches for decisions taken withinthe company, but it is the main direction to identify, develop, implement, and evaluate the business processes. The levers used to develop a strategic performance management denote the measures to reduce the riskin the decision-making process, which reflect the chance of unfavourable elements with negative consequences on the decision. In other words, the decision-making process is influenced by events or phenomenathat influence the business of modern companies, being the expression of the non-realization of the desiredprofit or loss within the economic transactions. To make a decision, it is necessary to take into account therisk of events that may have unfavourable consequences on the proposed goals, trying to avoid the risks or,if possible, to minimize them, transferring them to another implementation stage. In this article, the conceptof risks as a concept, their typologies and characteristics have been presented, from the perspective of possible financial-economic decisions in the company's business context, as well as the consequences that mayoccur. In real company practice, as a rule, the manager of a private company lacks sufficient data aboutconsiderable aspects of risk factors and thus takes decisions with delayed effects.