Decision analysis can be used to develop an optimal strategy when a decision maker is faced with several decision alternatives and an uncertain or risk-filled pattern of future events.
Even when a careful decision analysis has been conducted, the uncertain future events make the final consequence uncertain.
The risk associated with any decision alternative is a direct result of the uncertainty associated with the final consequence.
Good decision analysis includes risk analysis that provides probability information about the favorable as well as the unfavorable consequences that may occur.