Decision Analysis

Decision Analysis is a structured and visual approach to strategic decision-making in a dispute. Herbert Smith Freehills' Decision Analysis Team uses financial modelling techniques supported by specialist software to create an interactive decision tree model which quantifies and visualises legal risk 'at a glance'. Our models are underpinned by in-depth legal analysis, but their outputs are simple and business friendly.

Whether choosing to launch proceedings, settle, or pivot to a different strategy, most avenues in a contentious matter are beset by legal and commercial risk. Our models quantify this risk, showing the likely return on investment of a decision or case theory, and helping clients compare the pros and cons of different options in the dispute.

The Decision Analysis Team has over seven years' experience creating models for clients. They work alongside case teams and draw on existing legal analysis to identify the key points of uncertainty in a dispute and attribute probabilities to each possible outcome. They then apply decision science techniques to present the legal advice in a mode that resonates with the boardroom. 

Models are bespoke and have been used for multiple purposes, including briefing commercial decision-makers, evaluating or making settlement offers, and to inform funding decisions and overall strategy. The approach can be applied to all types of dispute, including litigation, arbitration, ADR and contentious regulatory matters (whatever the governing law and dispute resolution forum).

DECISION ANALYSIS AT HSF

To find out more about what Decision Analysis is and how it is being used by HSF, please view the video above, read this article in Inside Arbitration and our series on selected real-life use cases linked below, or contact us at decisionanalysis@hsf.com

Decision Analysis Series

Read our series of discussions about how clients have used HSF's Decision Analysis models as part of their strategy for disputes management.

Part 1 - Using Decision Analysis to evaluate a settlement offer

Part 2 - Using Decision Analysis in settlement negotiations

Part 3 - Using Decision Analysis for distressed debt valuations

Part 4 - Using Decision Analysis for case management