Coping with uncertainties in a reasoned way is essential to effective dispute management. Documenting your decisions is essential to defending your due diligence in making them. A decision tree puts multiple uncertainties into perspective, taking into account all potential outcomes. It is your tool for making good decisions, improving your chances of obtaining a good outcome and retaining a record of how you reached them.
Decision analysis rests on the idea of expected value. In shorthand terms, “expected value” is the value of a potential outcome, multiplied by the probability of its happening. In the multiple uncertainty world of dispute management, it is the weighted average value of all potential outcomes.
Learn how business managers can use this tool in managing their disputes. Click here for PDF copy of our information booklet, Legal Risk Evaluation Services Using Decision Tree Analysis.