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General Aspects of Risk and Uncertainty in Making Financial – Economic Decisions

Author

Listed:
  • Aurelian DIACONU

    („Artifex”University of Bucharest)

  • Doina AVRAM

    (Bucharest University of Economic Studies)

Abstract

The risk reflects the chance of an unfavorable event with negative consequences for the decision maker. It is influenced by events or phenomena that affect the affairs of commercial companies, the expression of the failure to achieve the intended gain or the loss in economic transactions. When making the financial-economic decision, the decision-maker must take into account the risk of occurrence of events that may have adverse effects on its objectives. In general, the risk is avoided or if it is not possible to try to minimize it or transfer it. This article presents the concept of risk and uncertainty in making financial and economic decisions in the company’s activity, the distinction between the two and the consequences that may arise.

Suggested Citation

  • Aurelian DIACONU & Doina AVRAM, 2017. "General Aspects of Risk and Uncertainty in Making Financial – Economic Decisions," Romanian Statistical Review Supplement, Romanian Statistical Review, vol. 65(6), pages 40-50, June.
    • Handle: RePEc:rsr:supplm:v:65:y:2017:i:6:p:40-50
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Financial – economic decisions; decision maker; risk; uncertainty; decision tree;
    All these keywords.

    JEL classification:

    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty
    • G31 - Financial Economics - - Corporate Finance and Governance - - - Capital Budgeting; Fixed Investment and Inventory Studies

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