a) Advise on the procedure generally followed in the decision making process. b) Explain clearly the key activities involved in the risk assessment process. c) Comment on the relationship between decision making and risk analysis. d) Briefly explain the characteristics of the main decision types and which one would be more at play in this situation.
The National Revenue Authority (NRA), is charged with the collection of tax revenues for the National Treasury. Each year they are given a target to achieve. However, from past experience the Authority has realized the actual collections achieved is dependent on the performance of the economy. This has gotten the Commissioner worried to such an extent that he has summoned a meeting of all the Unit Directors to consider how well to incorporate this uncertainty into the Authority’s decision making and planning. Being the Director of Planning, you have been tasked with the guidance of the whole team.
Required:
a) Advise on the procedure generally followed in the decision making process.
b) Explain clearly the key activities involved in the risk assessment process.
c) Comment on the relationship between decision making and risk analysis.
d) Briefly explain the characteristics of the main decision types and which one would be more at play in this situation.
Uncertainty and risk are two of the major issues that firms face in the modern business world. It can be challenging to forecast what will happen next given the constantly shifting nature of the industry. Because of this, it's critical for organizations to have a strategy for handling risk and uncertainty.
Diversification, hedging, and insurance are some of the most efficient ways to accomplish this. You can lessen the effects of any one event by diversifying your business. Hedging can also aid in securing your company against market changes. Finally, insurance might provide as a safety net in case of an unanticipated loss.
By implementing these risk management strategies, you can help to protect your business from the challenges of uncertainty and risk.
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