Evaluate the consequences
Monday, September 29, 2008 by john

Decision making is not about whether to take a risk or not. It is about how to take reasonable risks and how to evaluate the impact of those risks. Reasonableness is, of course, subjective and differs between people, organizations and situations. What it really boils down to is, which option has the most acceptable set of consequences, given my current context and my desired goals? This means understanding the true consequences of the decision and also brings in the concept of regret. What will be my level of regret if I do this and what will it be if I don’t? In essence, we are talking here about the potential negative value placed on the consequences of the action or inaction.






