ABSTRACT
This chapter explores what goes into making a risky and important decision, and builds a decision-making model that provides leaders some choices about the degree to which they want to be informed as a leader. The information needed to make a risky and important decision includes the decision objectives to be achieved, the context within which the decisions being made, and the decision options that leaders are considering. Clearly defined and measurable decision objectives allow leaders to assess the quality of their decision-making process and define metrics to track progress toward the outcomes. Once leaders know why the decision matters, defined by its objectives, they can then consider the context of their decision. Based on the objectives and the context, there will be alternative routes to take. Leaders must explore the alternatives that they need to decide between and define comparable options. Both individual risk preferences and group risk culture affect perception of risk.
