Risk and Uncertainty in Investment Decisions: An overview

Risk and Uncertainty in Investment Decisions: An overview

Author by Dr. Monisola Alao

Journal/Publisher: Arabian Journal Of Business And Management Review (oman Chapter)

Volume/Edition: 2

Language: English

Pages: 53 - 64


The decision making process in business is prone to risk because uncertainty is inherent in the expected outcomes of investments decisions which may lead to losses and business liquidation. The study being a desk research is a descriptive one that applied the Target MOTAD model. It examined the effect of investment decisions, identify inherent risks and suggest proactive measures of handling risk challenges using secondary data such as relevant journals, textbooks and statistical reports. The paper found that a major challenge of investors is recognizing and managing risk due to unstable investment climate. Also the apparent failure of regulatory bodies encouraged greed and dishonesty which informed sharp business practices. This paper thus, concludes that the effects of risk could be minimized, it recommends that regulatory bodies must take proactive measures that could minimize policy summersault and that managements must also be sincere and convinced in their investment decisions in order to minimize their investment portfolio risk

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