In this lecture general principles for decision making in different scenarios will be examined.  If the result of a decision option is determined, certainty is given; if, on the other hand, it is subject to stochastic influences, we speak of uncertainty. If it is possible to describe these stochastic influences exactly, then these are decision processes under risk. For example, a stochastic influence would be given by the probabilities of occurrences of possible scenario conditions at the end of a one- or multi-period planning horizon. Due to their importance for risk management, decision-making processes under risk are a central theme of this lecture. Of particular importance in this context is also determining the parameters necessary for defining the stochastic model and whether the associated costs are related to the benefits.

Literature

1. Laux: Entscheidungstheorie. current edition. Springer Gabler, Berlin
2. Bamberg, Coenenberg: Betriebswirtschaftliche Entscheidungslehre. current edition. Vahlen, Munich