Introducing Game Theory to Risk Management

Introducing Game Theory to Risk Management

Using game theory to aid decision making is a natural fit in the business environment. PHOTO:
Sheila Sund

The Cuban missile crisis is frequently cited as an example of the use of game theory.

When the Kennedy government found the USSR had installed missiles in Cuba that were capable of hitting American cities with nuclear weapons, it faced a number of strategic decisions, each of which carried a related potential outcome and reaction by the USSR. This article from plus Magazine goes deeper into the relationship of game theory and the Cuban missile crisis.

I see this as an excellent example not only of game theory, but about risk management.

Game…

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