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Risk and uncertainty

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA APM Exams › Risk and uncertainty

  • This topic has 1 reply, 2 voices, and was last updated 2 years ago by Ken Garrett.
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  • November 4, 2022 at 6:50 am #670630
    QAZWED
    Member
    • Topics: 24
    • Replies: 38
    • ☆☆

    In the exam the calculation will not be asked for payoff table and all the other things like minimax maximax ,etc right?

    November 4, 2022 at 9:20 am #670658
    Ken Garrett
    Keymaster
    • Topics: 10
    • Replies: 10583
    • ☆☆☆☆☆

    I see no reason why these could not be required and I think these are still relevant.

    The pertinent section of the Study Guide is A g, which states:

    “Evaluate how risk and uncertainty play an important role in long-term strategic planning and decision-making, including the impact of the different risk appetites of stakeholders. [3]”

    The verb ‘evaluate’ implies that calculations might be required.

    In addition, the list of technical articles on the ACCA site contain two articles dealing with this topic and payoffs are mentioned and displayed in tables:

    The risks of uncertainty – part 1
    This article considers the concepts of risk and uncertainty will be introduced together with the use of probabilities in calculating both expected values and measures of dispersion.

    The risks of uncertainty – part 2
    In this article on the risks of uncertainty, we build upon the basics of risk and uncertainty addressed in the first article published in the first part to examine more advanced aspects of incorporating risk into decision making.

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