02.03 |【03】| What is uncertainty ?

⚠ Decision maker should know that…

ℹ Risk ≠ Uncertainty

 

ℹ Risk…

  • quantifiable

  • ✅ associated probabilities — known

  • use of financial modelling — feasible

 

ℹ Uncertainty…

  • unquantifiable

  • ❎ associated probabilities — unknown

  • ❎ use of financial modelling — unfeasible