14. It is common in business to insure against the occurrence of events, which are subject to varying degrees ofuncertaintY, for example, ill health of senior executives. At the same time, the use of formal analytical models to assist in the process of making decisions on business problems which are generally subject to uncertainty, does not appear to be very widespread.

Describe the model building approach to the analysis of business problems, under conditions of uncertainty. Discuss the apparent inconsistency in company's willingness to insure when formal analytical of an Operations Research nature which allow for uncertainty are relatively rarely employed.