A Systemic Approach to Risk Management: Utilizing Decision Support Software Solutions for Enhanced Decision-Making
Journal Title: Acadlore Transactions on Applied Mathematics and Statistics - Year 2023, Vol 1, Issue 2
Abstract
The process of decision-making involves selecting the most suitable management action from a range of options, thereby guiding the system towards its management objectives. Within the complex decision-making environment, uncertainty prevails, giving rise to the domain of risk. Effective risk management entails various activities that are implemented during distinct phases of system management. To address this, a systemic approach to risk management is crucial, along with the adoption of software solutions for risk analysis. This study examines the systemic approach to risk management and proposes a potential solution for managing uncertainties and risks by employing software tools that are rooted in system quality. System quality encompasses the development of novel models, methods, tools, and procedures, whose consistent application ensures reliable outcomes based on the best available information. Consequently, this study explores the application of innovative software solutions that support the risk management process across all phases. Given that risk management relies on data, which may not offer a comprehensive view of the environment, decision-making can be regarded as a process of managing the conversion of data into information. The acquisition of new information regarding the system's state determines the approach to modify the system through the chosen decision. Information serves as the essence of the decision-making process, as quality information facilitates quality decisions. However, in an information space characterized by incomplete data, the quality of decisions diminishes. Software solutions capable of providing the necessary level of information quality, despite uncertainties and incompleteness, enable decision-making based on partial information while upholding a minimum standard of quality.
Authors and Affiliations
Nenad Komazec, Katarina Jankovic
Keywords
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- EP ID EP732900
- DOI 10.56578/atams010202
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