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