Risk Assessment of Decisions Making

Authors

  • Stasys Pu┼íkorius Mykolas Romeris University

Keywords:

risk, risk level, assessment of risk level, heuristics, rationality, risk of audit.

Abstract

The risk assessment problems taking and implementing decisions are analyzed. In reality quite often the intuitive
reasoning is used which follows from the assumption that decision or action is the best one. Author
points at the drawbacks of such attitude and analyzes the possibilities of heuristics and rationality theory. It is
underlined, that the risk is some instrument to measure the rationality the decision. Paper presents estimations
of one and many variables, calculations and formulas which influence the quality of decision. The exclusive
attention is paid to the risk assessment in audit; risk connected with audit findings, with audit planning, and
audit procedures. Features of risk assessment have been explored in the paper.

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Published

2006-06-30

Issue

Section

Articles