Decisionmaking Under Deep Uncertainty
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Decision making under deep uncertainty (DMDU) is a
decision science Decision may refer to: Law and politics *Judgment (law), as the outcome of a legal case * Landmark decision, the outcome of a case that sets a legal precedent * ''Per curiam'' decision, by a court with multiple judges Books * ''Decision'' (novel ...
practice and analytical framework that evaluates potential solutions across multiple plausible future scenarios rather than attempting to predict a single future outcome. This approach is particularly valuable for
strategic planning Strategic planning is the activity undertaken by an organization through which it seeks to define its future direction and makes decisions such as resource allocation aimed at achieving its intended goals. "Strategy" has many definitions, but it ...
,
public policy Public policy is an institutionalized proposal or a Group decision-making, decided set of elements like laws, regulations, guidelines, and actions to Problem solving, solve or address relevant and problematic social issues, guided by a conceptio ...
, and
risk management Risk management is the identification, evaluation, and prioritization of risks, followed by the minimization, monitoring, and control of the impact or probability of those risks occurring. Risks can come from various sources (i.e, Threat (sec ...
when stakeholders, analysts, and decision-makers cannot reach consensus about future conditions or when traditional
forecasting Forecasting is the process of making predictions based on past and present data. Later these can be compared with what actually happens. For example, a company might Estimation, estimate their revenue in the next year, then compare it against the ...
methods are inadequate due to fundamental uncertainties. DMDU employs simulation models and
scenario planning Scenario planning, scenario thinking, scenario analysis, scenario prediction and the scenario method all describe a strategic planning method that some organizations use to make flexible long-term plans. It is in large part an adaptation and gen ...
to explore potential futures through multiple "States of the World" (SOWs) and alternative scenarios, enabling comparison of how different policy options or decisions might perform across diverse possible outcomes. The methodology focuses on identifying robust and adaptive decisions that can perform well across a range of uncertain conditions, rather than optimizing for a single predicted future. The term "deep uncertainty" distinguishes this approach from traditional
decision theory Decision theory or the theory of rational choice is a branch of probability theory, probability, economics, and analytic philosophy that uses expected utility and probabilities, probability to model how individuals would behave Rationality, ratio ...
and
risk analysis In simple terms, risk is the possibility of something bad happening. Risk involves uncertainty about the effects/implications of an activity with respect to something that humans value (such as health, well-being, wealth, property or the environ ...
, which typically assume that probabilities can be assigned to different outcomes. In contrast, DMDU is applied when uncertainties are so profound that multiple parties cannot agree on the appropriate
probability distributions In probability theory and statistics, a probability distribution is a function that gives the probabilities of occurrence of possible events for an experiment. It is a mathematical description of a random phenomenon in terms of its sample spac ...
, system models, or even the range of possible outcomes. This framework has been increasingly applied to long-term challenges such as
climate change adaptation Climate change adaptation is the process of adjusting to the effects of climate change, both current and anticipated.IPCC, 2022Annex II: Glossary öller, V., R. van Diemen, J.B.R. Matthews, C. Méndez, S. Semenov, J.S. Fuglestvedt, A. Reisinger ...
, infrastructure planning, water resources management">infrastructure">öller, V., R. van Diemen, J.B.R. Matthews, C. Méndez, S. Semenov, J.S. Fuglestvedt, A. Reisinger ...
, infrastructure planning, water resources management, and urban planning, where decisions must remain effective despite significant uncertainties about future conditions.


Levels of uncertainty

DMDU practitioners employ a variety of descriptions for levels of certainty. As
Donald Rumsfeld Donald Henry Rumsfeld (July 9, 1932 – June 29, 2021) was an American politician, businessman, and naval officer who served as United States Secretary of Defense, secretary of defense from 1975 to 1977 under President Gerald Ford, and again ...
remarked, there are known unknowns (what we know we do not know) and unknown unknowns (what we do not know that we do not know). The Clean Air Task Force describes these levels as: Uncertainty that can be quantified or characterized by specific questions: * Level 1: Virtual certainty * Level 2: Alternate futures with probabilities * Level 3: Alterative futures with ranked possibilities Deep uncertainties: * Level 4: Multiple plausible futures (where possible outcomes are known, but their likelihood cannot be predicted) * Level 5: Unknown unknowns (where the full range of possible outcomes is unknown and the likelihood of any of these outcomes cannot be predicted).


Applications

DMDU methods can help develop plans when there is a wide range of unknown futures. These methods are widely applicable to many sectors.


Climate scenario planning

The
Intergovernmental Panel on Climate Change The Intergovernmental Panel on Climate Change (IPCC) is an intergovernmental body of the United Nations. Its job is to "provide governments at all levels with scientific information that they can use to develop climate policies". The World Met ...
(IPCC) has used DMDU concepts to examine risks and scenarios in multiple future storylines since the early 2000s. The Science Advisory Board for the National Oceanic and Atmospheric Administration (NOAA) recommended that NOAA use DMDU techniques in its strategic planning: " The benefits of DMDU techniques include systematic and deliberative exploration of possible futures for management applications that could reduce the potential for unanticipated and unintended consequences. Because DMDU techniques seek to identify "low-regret" and/or robust solutions that are beneficial over a broad set of potential future situations, they have the potential to improve confidence that proposed policy and program actions are worthwhile."


Transportation planning

Rand Corporation partnered with the
Federal Emergency Management Agency The Federal Emergency Management Agency (FEMA) is an agency of the United States Department of Homeland Security (DHS), initially created under President Jimmy Carter by Presidential Reorganization Plan No. 3 of 1978 and implemented by two Exec ...
to develop a guide for using DMDU in transportation planning. The
U.S. Department of Transportation The United States Department of Transportation (USDOT or DOT) is one of the executive departments of the U.S. federal government. It is headed by the secretary of transportation, who reports directly to the president of the United States a ...
uses these analyses "when probabilistic forecasts are unavailable or when there is low confidence in or significant disagreement regarding any such estimates. The
Sacramento Area Council of Governments Sacramento ( or ; ; ) is the List of capitals in the United States, capital city of the U.S. state of California and the county seat, seat of Sacramento County, California, Sacramento County. Located at the confluence of the Sacramento Rive ...
(SACOG) used DMDU in its 2016 Metropolitan Transportation Plan to stress test the plan against 10,000 modeled futures with different combination for gas prices, fuel efficiency, employment, zero emissions vehicles emissions, customer behavior, and vehicle miles traveled.


Water

Water conditions rely on temperature and precipitation patterns. DMDU provides a way to visualize how water operations could be optimized or could be used to avert water shortages and to handle droughts or floods. Rand partnered with the
Bureau of Reclamation The Bureau of Reclamation, formerly the United States Reclamation Service, is a List of United States federal agencies, federal agency under the U.S. Department of the Interior, which oversees water resource management, specifically as it ...
to develop case studies, including the Colorado River and the Pecos River.


Energy

Energy decisions involve many uncertainties including future climates (
decarbonization pathway A decarbonization pathway is a way for something, such as a country or energy system, to reach a greenhouse gas emissions target, such as net zero by 2050. Nineteen of the G20 countries have announced net-zero targets for this time frame. Decarbon ...
s), technological advances, economic development; many stakeholders. Decisions must be made quickly as well as decisions to invest in long-term infrastructures. Therefore, DMDU analyses have proven useful in the energy sector. The Clean Air Task Force characterised the high levels of uncertainty in the energy sector as "Critically, what makes decisions around the energy transition different from many other uncertain political contexts is that not only are we unsure about the future, but we do not have any information about the probabilities of possible outcomes. In fact, even the full range of possible outcomes is unknowable. This concept of making decisions with this degree of unknowns about the scope of future states is referred to as decision making under deep uncertainty (DMDU)."


Public health

DMDU can be used for pandemic planning as preparing only for worst-case scenarios may lead to overspending and distract attention from prevention, treatment, and innovation. DMDU can provide an overall framework for decisionmaking and analysis in ongoing health crises.


Community and urban planning


Initiatives and organizations

The Society for Decision Making Under Deep Uncertainty brings professionals together to improve DMDU tools and practices.


DMDU conferences and workshops

The
Transportation Research Board The Transportation Research Board (TRB) is a division of the National Academies of Sciences, Engineering, and Medicine. TRB's mission is to mobilize expertise, experience, and knowledge to anticipate and solve complex transportation-related challe ...
hosted a DMDU Initiative meeting at its 2024 annual meeting to rename their planning initiative to DMDU. DMDU Society meetings included: * The 11th Annual Conference of the Society for Decision Making Under Deep Uncertainty (DMDU) took place November 19–21, 2024 and was hosted by
University of Denver The University of Denver (DU) is a private research university in Denver, Colorado, United States. Founded in 1864, it has an enrollment of approximately 5,700 undergraduate students and 7,200 graduate students. It is classified among "R1: D ...
and the Bureau of Reclamation. * 2020 online (Hosted by Tecnológico de Monterrey) * 2019 in Delft * 2018 in Southern California * 2017 in Oxford  * 2016 in Washington, D.C. * 2015 in Delft * 2014 in Santa Monica * 2013 in Washington, D.C.


See also

*
Info-gap decision theory Info-gap decision theory seeks to optimize robustness to failure under severe uncertainty,Yakov Ben-Haim, ''Information-Gap Theory: Decisions Under Severe Uncertainty,'' Academic Press, London, 2001.Yakov Ben-Haim, ''Info-Gap Theory: Decisions Und ...
* Robust decision-making *
Decision-making models Decision-making as a term is a scientific process when that decision will affect a policy affecting an entity. Decision-making models are used as a method and process to fulfill the following objectives: * Every team member is clear about how a de ...


References

{{Decision theory Decision theory Decision-making software Decision analysis Decision support systems