Risk is uncertainty when grappling with random variables (Froeb et al., 2020). Uncertainty is describing what we do not know about the distribution of the variables themselves (Froeb et al., 2020). Uncertainty and risk are different. Risk is quantifiable while uncertainty is fraught with the unknown leading to potential false confidence (Froeb et al., 2020). I have definitely seen a lot of uncertainty within my own organization.

At my organization, decision-making has been heavily influenced by uncertainty. I will bring up the staffing issue again because it is such a prevalent issue within healthcare. The firm was not certain if other hospitals were paying more, although there were rumors. This seemed to stunt the organization, and because they did not really want to pay people more they decided to hope the rumors were not true.

Despite the inevitability of uncertainty, it is important for firms to recognize it and act accordingly. The text says this can be done by developing simple and flexible plans (Froeb et al., 2020). I believe that this kind of flexibility is not present in my firm, which leads to a lack of creativity and openness to ideas. Now, they are in such a staffing dilemma that recovery is going to take much longer than if they got ahead of the issue.

 

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