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The Main Difference Between Risk & Uncertainty Decision Essay Paper

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What is the difference between risk and uncertainty? Provide examples of what your organization has done, or not
done, to deal with risk and uncertainty. How did those actions affect the firm once a contingency of risk or
uncertainty materialized?
The main difference between risk and uncertainty is that one is the variables of one decision vs
not being able to foresee these variables. For many companies, they face risks every day with changes to
pricing and business decisions. Compared to uncertainty would be more of something like the beginning
of the pandemic many companies were unsure of how consumers were going to react and how they can
retain business.
With State Farm one of the actions that were taken due to the uncertainty was providing covid
relief to its customers by dropping insurance rates, allowing skipped payments due to covid, and more
digital options for access and submitting claims. This has helped with the overall growth of the company
and has created a higher demand for the products when it came to new insurance policies. Without a
reaction such as this, I do believe that they would not be as competitive in this marketplace due to the
possible losses of current customers.

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What is the difference between risk and uncertainty? Provide examples of what your organization has done, or not done, to deal with risk and uncertainty. How did those actions affect the firm once a contingency of risk or uncertainty materialized? The main difference between risk and uncertainty is ...
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