What the submarine deal reveals about the Australian government's approach to decision-making amidst uncertainty.

Join us for ACIL Allen's first podcast, where host and CEO Paul Hyslop sits down with expert David Campbell to discuss Australia's recent submarine deals as it reveals how our government deals with uncertainty. We dive into the risks and large costs associated with ignoring uncertainty, the value of flexibility when weighing these sorts of decisions, and the importance of having an ongoing and adaptive strategy. Big and irreversible projects with long lead times in an environment of uncertainty require modern techniques for making the best decisions. Whether it be Australia's defence strategy and the recent change in submarine acquisition strategy, mitigating and adapting to climate change or taking actions to survive droughts, decision-making frameworks that emphasise uncertainty and flexibility to adapt to an uncertain future are essential to avoiding large costs and being able to benefit as the future is revealed. Traditional decision-making frameworks such as benefit-cost analysis are not suited to these circumstances. Using a real options framework places the management of uncertainty at the centre of the decision-making process and emphasises flexibility to adapt to the uncertain future. Listen now and join the conversation with ACIL Allen on how Australia can improve the way we approach big decisions.