Risk assessment of a management decision

the article proposes to consider the risk from the point of view of the criterion for assessing the effectiveness of the management decision. It is assumed that the criterion for evaluating a management decision is directly related to a certain indicator, and the effectiveness of a management decision is determined by the best value of the indicator. The choice of criterion made by the manager is subjective, and the validity and risk of a management decision depends entirely on the choice of criterion. In turn, the values of the criterion are determined at a certain interval in which the risk distribution function is set. Thus, the values of the criterion are associated with the risk values, which makes it possible to increase the validity of the management decision.

econometrics, risk scale, risk allocation functions, management decision evaluation criteria