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Technical

Risk and Uncertainty in Decision Making Logo cgma

  Kaplan Publishing Limited |   $65.00 - 75.00 |   CPE: 2.5 |   AICPA |   Jul 2015 |   Business Mgmt. & Organization |   AICPA Store
Who Will Benefit?
  • Management accountants wanting to develop skills in financial performance management
  • CGMA exam candidates
Topics Discussed:
  • Risk and uncertainty
  • Probabilities and expected values
  • Pay-off tables and decision criteria
  • Maximax, maximin and minimax regret
  • Decision trees and multi-stage decision problems
  • Sensitivity analysis
  • Conditional probabilities – the Bayes theorem
Learning Objectives

When you complete this course, you will be able to:

  • Differentiate risk and uncertainty
  • Identify decision makers’ attitudes to risk and effect on decision making
  • Apply sensitivity analysis, expected values, standard deviations, and probability tables to decision making.
  • Apply decision models to deal with uncertainty in decision making, for example decision trees.
This CPE course is included in the 60+ hours of Financial Performance Management Program. It can also be purchased individually or as a part of Financial Decision Making.

Many business decisions will involve an element of risk and uncertainty. This CPE course looks at how risk and uncertainty can be built into the decision making process. It explores, in depth, the probabilities and expected values, including histograms, utility theory, advantages and disadvantages of expected values, and standard deviations. This course also includes information on pay-off tables and decision criteria, maximax, maximin and minimax regret, as well as decision trees and multi-stage decision problems. In addition, there are multiple illustrations throughout to help in gaining an understanding of risk and uncertainty in the decision making process.

Topics covered:
  • Management accounting: People: Negotiation & decision making, Foundational
  • Management accounting: Technical: Risk management & internal control: Risk management policies & procedures, Foundational
  • Management accounting: Technical: Risk management & internal control: Risk identification & assessment, Foundational

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