SESSION – 12

RISK ANALYSIS USING DECISION TREE

ANALYSIS

DR SANDEEP K GUPTA, PHD, MBA, M. TECH.

SHIV NADAR UNIVERSITY
CAUSE AND EFFECT DIAGRAM
RISK MAP
DECISION TREE
DECISION TREE
• A DECISION TREE IS A USEFUL TOOL FOR ENABLING CHOICE
BETWEEN SEVERAL COURSES OF ACTION. IT PROVIDES A HIGHLY
EFFECTIVE STRUCTURE WITHIN WHICH OPTIONS CAN BE
EXPLORED AND POSSIBLE OUTCOMES CAN BE INVESTIGATED. IT
ALSO HELPS TO FORM A BALANCED PICTURE OF THE RISKS AND
REWARDS ASSOCIATED WITH EACH POSSIBLE COURSE OF ACTION.
• A DECISION TREE IS PARTICULARLY USEFUL WHEN CHOOSING
BETWEEN DIFFERENT STRATEGIES, PROJECTS OR INVESTMENT
OPPORTUNITIES, PARTICULARLY WHEN RESOURCES ARE SCARCE.

https://www.youtube.com/watch?v=OCY2Kk1FCLg
 EXAMPLE

https://www.pmi.org/learning/library/decision-tree-analysis-expected-utility-8214
 DECISION TREE WITH CHAINS OF ACTIONS AND EVENTS

https://hbr.org/1964/07/decision-trees-for-decision-making
CLASS-ROOM ACTIVITY
SOLUTION
QUERY ???