| Method | Real Options Analysis | |
| Management | Decision optimisation | |
| Process | Any suitable | |
| Description | Builds flexibility and reversibility into plans assuming uncertainty will reduce over time. | |
| Long Description | (From ChatGPT) Real Options Analysis is a framework for evaluating investment opportunities that explicitly accounts for uncertainty and managerial flexibility, by treating strategic decisions as “options” that can be exercised in the future when more information is known, thereby enhancing decision-making under risk. Key features Flexibility: Decisions can be adjusted over time (e.g., scale up, delay, or abandon). Uncertainty-focused: Useful when future conditions (market, climate, technology) are highly uncertain. Option value: Like financial options, there is value in having the right, but not the obligation, to act later. Dynamic decision-making: Encourages staged investments rather than committing fully upfront. Examples Phased construction of infrastructure projects. Delaying adoption of a new technology until performance or cost is clearer. Investing in adaptive climate solutions with adjustable scale. | |
| Enabled | True | |
| Links |
(Dittrich et al., 2016)
(Borison, 2005) (Trigeogis & Reuer, 2017) (Bowman & Moskowitz, 2001) |
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| Criticality: | ||
| 0% | ||
| 0% | ||
| 100% | ||
| 25% | ||
| 0% | ||