Every decision involves making a choice between alternatives, with the project leader picking from a number of options. This selection is influenced by information (albeit sometimes insufficient) and preferences rooted in values and ethics. In these circumstances, the modern trend of risk-based decision-making can be seen as a tautology: Every decision involves uncertainty and therefore incorporates an element of risk.

The worst option is to delay a decision until all of the necessary information is available—and, as a consequence, all of the opportunities have evaporated. So how do you make good decisions? The starting point is to accept there will be uncertainty in all true decisions—and the outcome matters. You have to choose between different options while navigating any number of obstacles ahead of you: incomplete information to support the decision, no clear best path and unknown outcomes of some options. The challenge is to make the best decision in the available timeframe balancing risk and reward. No process can guarantee a good outcome every time, but working through a pragmatic process can help improve outcomes.

To read more, click here.