Decision making under deep uncertainty (DMDU) is a
decision science
Decision may refer to:
Law and politics
*Judgment (law), as the outcome of a legal case
* Landmark decision, the outcome of a case that sets a legal precedent
* ''Per curiam'' decision, by a court with multiple judges
Books
* ''Decision'' (novel ...
practice and analytical framework that evaluates potential solutions across multiple plausible future scenarios rather than attempting to predict a single future outcome.
This approach is particularly valuable for
strategic planning
Strategic planning is the activity undertaken by an organization through which it seeks to define its future direction and makes decisions such as resource allocation aimed at achieving its intended goals. "Strategy" has many definitions, but it ...
,
public policy
Public policy is an institutionalized proposal or a Group decision-making, decided set of elements like laws, regulations, guidelines, and actions to Problem solving, solve or address relevant and problematic social issues, guided by a conceptio ...
, and
risk management
Risk management is the identification, evaluation, and prioritization of risks, followed by the minimization, monitoring, and control of the impact or probability of those risks occurring. Risks can come from various sources (i.e, Threat (sec ...
when
stakeholders, analysts, and
decision-makers cannot reach consensus about future conditions or when traditional
forecasting
Forecasting is the process of making predictions based on past and present data. Later these can be compared with what actually happens. For example, a company might Estimation, estimate their revenue in the next year, then compare it against the ...
methods are inadequate due to fundamental uncertainties.
DMDU employs
simulation models and
scenario planning
Scenario planning, scenario thinking, scenario analysis, scenario prediction and the scenario method all describe a strategic planning method that some organizations use to make flexible long-term plans. It is in large part an adaptation and gen ...
to explore potential futures through multiple "States of the World" (SOWs) and alternative scenarios, enabling comparison of how different policy options or decisions might perform across diverse possible outcomes.
The methodology focuses on identifying
robust and
adaptive decisions that can perform well across a range of uncertain conditions, rather than optimizing for a single predicted future.
The term "deep uncertainty" distinguishes this approach from traditional
decision theory
Decision theory or the theory of rational choice is a branch of probability theory, probability, economics, and analytic philosophy that uses expected utility and probabilities, probability to model how individuals would behave Rationality, ratio ...
and
risk analysis
In simple terms, risk is the possibility of something bad happening. Risk involves uncertainty about the effects/implications of an activity with respect to something that humans value (such as health, well-being, wealth, property or the environ ...
, which typically assume that probabilities can be assigned to different outcomes. In contrast, DMDU is applied when uncertainties are so profound that multiple parties cannot agree on the appropriate
probability distributions
In probability theory and statistics, a probability distribution is a function that gives the probabilities of occurrence of possible events for an experiment. It is a mathematical description of a random phenomenon in terms of its sample spac ...
,
system models, or even the range of possible outcomes.
This framework has been increasingly applied to long-term challenges such as
climate change adaptation
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