By the end of this chapter students should:

• Be able to distinguish between risk and uncertainty
• Be able to identify the sources and types of risk typically faced by decision-makers
• Understand the ways in which risks are assessed and handled as part of the decision-making process
• Be familiar with a range of techniques and frameworks that can be used to analyse risk and the advantages and limitations of each
• Understand the ways in which firms might attempt to reduce risk and uncertainty
• Be able to conduct scenario analysis and understand the role that scenario building can play in the strategic decision-making process.