What we do
Risk Based Decision Making
‘Risk-Based Decision Making’ (RBDM) is about making strategic choices and taking actions while considering the potential risks and uncertainties associated with different courses of action. Risk management strategies can be incorporated into decision-making processes enabling organisations to make more informed and robust decisions.
RBDM is especially important in identifying the ‘real options’ which a company has prior to final investment decisions and which can be deferred, abandoned or changed, enabling strategic flexibility under uncertainty. This allows organisations to optimise value while managing risk across evolving project and market conditions.
In the energy sector overall and especially in the complex and continually evolving domains of energy transition and decarbonisation, RBDM is a structured approach to decision-making that considers the uncertainties and risks associated with different options or alternatives in complex, long-term processes.
RBDM is a critical methodology in comparing multi-attribute risks, in determining appropriate strategies for the future management of risks and in determining how to make best choices in an uncertain future. It can be used to assess: