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    Summary of Managerial Decision Making Under Risk and Uncertainty

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    hammadmajeed
    The document summarizes a study of managers and the risks involved in their decision making. It discusses the different types of risks managers face and their varying attitudes towards risk and risk management. The conclusion is that managers should take risks carefully using good techniques and information to overcome crises and achieve good outcomes.

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    Summary of Managerial Decision Making Under Risk and Uncertainty

    Uploaded by

    hammadmajeed
    15 views2 pages
    The document summarizes a study of managers and the risks involved in their decision making. It discusses the different types of risks managers face and their varying attitudes towards risk and risk management. The conclusion is that managers should take risks carefully using good techniques and information to overcome crises and achieve good outcomes.

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    The document summarizes a study of managers and the risks involved in their decision making. It discusses the different types of risks managers face and their varying attitudes towards risk and risk management. The conclusion is that managers should take risks carefully using good techniques and information to overcome crises and achieve good outcomes.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    15 views2 pages

    Summary of Managerial Decision Making Under Risk and Uncertainty

    Uploaded by

    hammadmajeed
    The document summarizes a study of managers and the risks involved in their decision making. It discusses the different types of risks managers face and their varying attitudes towards risk and risk management. The conclusion is that managers should take risks carefully using good techniques and information to overcome crises and achieve good outcomes.

    Copyright:

    © All Rights Reserved
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    Summary of

    Managerial Decision Making


    Under Risk and Uncertainty
    The case study is about those managers which take decisions at certain moments according to the
    situations. Many mangers make decisions on the base of different criteria. There are few people in this
    world who take’s decisions on bases of calculations. While some people take’s decisions by following
    well know and predefined paths. The decision-making and risk taking is always a great challenge
    for the managers.
    They face many problems and issues and they solve these issues in different manners. They said that a
    risky situation is a situation where the outcome is unknown to the decision-maker. When we asked them
    about some risky decisions in career they more than half of them associated this with different kinds of
    investment activities and divided them into such categories given as bellow:-

    1) Investing in new machines and new techniques


    2) Acquisition of new companies
    3) Development of new products and new markets
    This study was carried out in two major Swedish forest companies; it includes the interviews of
    twelve managers. If you discuss the managers about taking risks so you will receive different answers
    from it like that different types of risks, like:-

     Financial risks
     Fire risks
     Technical risks
     Commercial risks
     Investment risks

    Now about Risks and Returns, are they related? Managers have different concepts about risks which
    we are discussing bellow:-
     There is a relationship between risk and return, means “if you don’t take risks there will be no
    returns.”
     Some says that they were no gamblers and therefore were very careful when taking risks
     Some said that risk could be managed if you have correct information, sufficient knowledge
    about the problem
     Some of them say’s that they use their intuition or feeling to decide what is right or wrong
    According to the managers it is relatively easy to identify whether a person is risk-prone or risk-
    averse. In other sense risk-prone behavior is something positive and risk-averse behavior
    is something negative.
    Concluding the whole summary of case study is that managers should take decisions very
    carefully and risks bravely for gain more outcomes. Furthermore managers should use good
    techniques to overcome the crises and risks because good managers always used good techniques
    to overcome the crises. One main problem that has been identified is lack of information of
    problems which managers usually face. This problem can be resolved by using computer
    based system. Using computer based decisions is more valuable than making decisions
    by taking risks.

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