Title: Risk-Based Decision-Making: Strategies For Managing Uncertainty In Business
Authors: Tobi Solomon Onyachom festus E Urhode Ovie Reuben
Volume: 9
Issue: 2
Pages: 169-175
Publication Date: 2025/02/28
Abstract:
In today's dynamic business environment, uncertainty poses significant challenges to effective decision-making. Risk-Based Decision-Making (RBDM) strategies have become essential for organizations seeking to navigate unpredictable market conditions. This study examines the role of AI and data analytics in enhancing RBDM, the influence of organizational culture and leadership, and the effectiveness of a hybrid risk management approach. Using an empirical research design, data were collected from 200 organizations through surveys and 20 in-depth interviews with senior managers. Statistical analysis, including regression and factor analysis, was conducted to assess key determinants of effective risk-based decision-making. Findings revealed that AI and data analytics significantly improve risk assessment, while innovation-driven cultures and adaptive leadership facilitate technology adoption. A hybrid risk management approach-combining traditional expertise with advanced analytics-was found to be most effective. The study recommends increased AI investment, leadership development for digital transformation, and blended risk management strategies to enhance decision-making in uncertain environments.