A manager should be more confident of her assessment of a situation if it involves risk rather than uncertainty.

Question

Quizplus · Accepted Answer

Risk and uncertainty are two different concepts. Risk involves the possibility of a known outcome occurring, while uncertainty involves an unknown outcome. In situations involving risk, there is available data to assess and make informed decisions. As a result, a manager can be more confident in her assessment of the situation. In contrast, uncertainty involves unknown variables, making it difficult to make confident decisions.

A Manager Should Be More Confident of Her Assessment of a Situation