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7 Types of Decision Analysis

Decision analysis is the process of making decisions based on research and systematic modeling of tradeoffs. This is often based on the development of quantitative measurements of opportunity and risk. Decision analysis may also require human judgement and is not necessarily completely number driven. The following are the basic types of decision analysis.


Developing information that is relevant to a decision. This includes analysis of the problem space, solution space and the identification of risks.

Risk Analysis

Analysis of the probability and impact of identified risks. Risk analysis may also investigate treatment that can be used to reduce risk. In some cases, risk triggers and moment of risk may be modeled.

Decision Modeling

Modeling the structure of a decision such as a scoring system for options or identification of primary tradeoffs for a decision.


The use of software to process, calculate and visualize decision related data. In some cases, efforts are made to automate or semi-automate decisions using algorithms or artificial intelligence. For example, a credit score may be calculated to automate the decision to accept or reject a credit application.


The design of solutions. This can be a creative process that begins by freely brainstorming ideas that progresses to a more systematic process of evaluation.

Decision Making

The process of making a decision based on tradeoffs such as opportunity and risk in the context of your goals and risk tolerance. This can be a fully qualitative process of scoring. More commonly it is a call that is made by a talented individual such as a leader, architect or designer.

Decision Improvement

The process of evaluating the results of past decisions to improve decision making processes and analysis practices.
Overview: Decision Analysis
The process of making decisions based on research and systematic modeling of tradeoffs.
Related Concepts

Decision Analysis

This is the complete list of articles we have written about decision analysis.
Decision Analysis
Decision Goals
Decision Making
Decision Tree
Group Polarization
Risk Analysis
Risk Decision
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Decision Examples

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