Tony Robbins: an American author and coach says.
“It is in your moments of decision that your destiny is shaped”.
Hi readers!
You must have heard and used the word Decision countless times. Do you really know what it actually means? Please read details at link below
https://harappa.education/harappa-diaries/what-is-decision-making/
Decision making is a process that happens over a period of time.
It is the period where decision foundations is laid, decision
criteria are constructed and built. Collectively, this process leads to decision taking.
The decision is either taken at the moment or it is instantaneous and is taken when the choice is made, meaning thereby that the decision is taken from the available options. For example, consider a situations when a credit officer,
(CO: who work at financial institutions and assist clients with loan applications, evaluate, and recommend approval of loan for people and businesses)
has no freedom to analyze a proposal and decide the basis of the merits without consulting credit risk officer:
(CRO: who maintain relationship with clients, analyze potential loan markets, evaluate loan applications and documentation by confirming creditworthiness of successful clients, thereby outlining and building measures around a decision to be taken).
This way, the decision taken becomes the sole responsibility of the Risk Manager(RM) who provides analysis and evaluation to reduce credit risk for a financial institution. RM also extracts data from a variety of sources and uses that data to build moderately complex financial models that predict risk exposure.
In this example, the decision taken becomes a derivative of the decision-making responsibilities of the credit risk officer.
Let’s assume that there is a pending credit decision with respect to a loan application from an entrepreneur. In this case, the decision-making process is open to either subjective or objective frameworks. A subjective analysis is often ill-defined in character, i.e., the borrower is reliable in a generalized observation. The decision-making authority has had the opportunity to assess the reliability of the borrower on previous occasions that might have led to his observation, however an objective analysis insists on a certain degree of refinement.
Questioning the degree of reliability of the borrower will lead us to undertake an objective analysis to find an answer to it.
In other words, an objective analysis seeks to ascertain that given the acceptability of the entrepreneur as a reliable person in respect to loan performance, whether he would be able to repay the bank loan in certain constrained conditions and if so, to what extent? This insight separates the credit officer from the credit risk officer.
The outcome of most credit decisions are statements ranging from ”fair risk”, “high risk” or “acceptable risk”. Some quantitative measures that contributes to the decision-making process includes credit scoring, probability of default and loss-given-default. The outcomes of this helps the decision taker because:
For proper decision making and decision taking
1.The credit analyst must possess basic understanding of data analysis,
2. Knowledge of financial management,
3. Understanding of the frequent changing economic environment,
4. Perfect product knowledge of her organization,
5. Risk appetite as set by the organization must also be known and,
6. Finally, the CRO(Credit Risk Officer) should not meddle with the jurisdiction of the Head of RM (Risk Manager).
There are two other terms that you might have commonly heard and used, which are indecisiveness and poor decision-making skills. The two are somewhat over-lapping however, the key difference between the two are that:
While Indecisive people:
have trouble with decisions making, people with poor decision-making skills may make decisions, but they may not be good ones. In decisive people struggle to choose between different options or may be hesitant to decide at all, while people with poor decision-making skills may make impulsive or poorly thought-out decisions,
Indecisive people may struggle with a particular decision or set of decisions, while people with poor decision-making skills may struggle with decision-making across a variety of contexts,
Indecisive people
may be able to make decisions effectively in some areas of their life but struggle with others, while people with poor decision-making skills may consistently make poor decisions in a variety of situations.
In decisive people may be caused by a lack of confidence, anxiety, or fear of making the wrong decision that may lead to inaction or missed opportunities, while poor decision-making skills may lead to negative consequences or poor outcomes which may be caused by a lack of information, poor analysis, or overreliance on intuitions.
Overall, being indecisive and having poor decision-making skills are both challenges that can affect a person’s life and work. Addressing these challenges may involve different strategies, depending on the underlying causes and the specific situation Nevertheless, there are certain questions that need to be answered. For example:
What are the causes or the inability of decisions making?
Is it indecisiveness or a decision-making disorder? and
Why do some people have a hard time making decisions?
Take the example of a school where students are taught that there is only one right answer, and everything else is wrong. This is a simple answer which does disservice to the students. They get into life where no decision has one right answer, and everything else is wrong. Similarly,
These questions can have multiple right answers, or no right answers at all, leaving us to choose the best of the wrong answers.
Assume that you are trying to get to your parents to help them due to very bad weather. In front of you is a road flooded with water that is moving fast. You can’t go forward as you will not survive. Going right or left is clear but does not get you to your parents’ place. You can turn around and go home i.e., end the attempt. Not a right answer.
Imagine, you are at a restaurant. The menu has many interesting items to choose from. But you’ve never tried any of them, and there is always a chance you won’t like what you order. But if you order, you will pay, even if you don’t like it. If you don’t order, you will be hungry.
The best bet is to order something and make the best of it. Maybe you will luckily get and find new favorite meal?
Think you are looking for a job. You have three job offers but none of them is exactly what you want. You could turn them all down, but then you have no income, and your resume has a hole. How do you choose?
Bottom line: do the best you can, and then make the most of the choice you want. No magic will tell you which is the best choice, it is about making a choice, and giving it your best.
If you wait for a decision to be perfect, you will be waiting forever. If you recognize every decision is a risk, and the chance to learn something, then you can approach each decision as an adventure.
Go enjoy your adventures, and be prepared to learn from them, and make the most of them. If you don’t like the choice, look for another one.
And if you still need to make a big decision?
Try 1000minds decision-making software for free which help people make better decisions every day because!
Every decision you make reflects your evaluation of who you are, says,
“Marianne Williamson “an American author, speaker, and politician.
That’s all for now dear readers.
Please look around and see who need this education?
See you next week. Take care, Bye.
