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WEEK 2 BUSINESS DECISIONS

WEEK 2 BUSINESS DECISIONS

Q Most business decisions are made under conditions of either risk or uncertainty. What is the difference between risk and uncertainty (please cite your sources)? In your opinion, is it easier to make a decision under a condition of risk or a condition of uncertainty? Why? Give an example from your experiences to support your answer.

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In the business landscape, risk and uncertainty has a huge difference. A risk is defined as the issue or threat that is known to the organization and has the propensity of occurrence. On the other hand, uncertainty is defined as that harm which is unpredictable and beyond control and it is not yet known to the organization but has the potential to cause considerable amount of harm to the company.