The potential risks and benefits of using predictive analysis in decision making include:

Benefits:
– Improved decision-making: Predictive analytics can help businesses make stronger, more informed decisions by relying on data to determine potential outcomes.
– Risk management: Predictive analytics can help develop risk management strategies for potential risks and prioritize the most detrimental risks.
– Customer insights: Predictive analytics can help businesses better understand potential customers and what they need.
– Operational efficiency: Predictive analytics can help companies operate more efficiently by turning to historical data to understand resources and better manage them.
– Competitive advantage: Predictive analytics can help businesses stay ahead of their competitors by adapting their strategies and offerings in response to predictive insights.

Risks:
– Blind decision-making: Making decisions without predictive insights can result in investments in products, services, or strategies that don’t align with market trends or customer preferences.
– Reactive rather than proactive: Decisions made without predictive analytics tend to be reactive rather than proactive.
– Inefficient resource allocation: Without predictive insights, resource allocation becomes a guessing game.
– Missing market trends: Failing to keep up with market trends can result in missed opportunities and market share losses.
– Increased operational costs: Making decisions without predictive insights can lead to higher operational costs.
– Financial consequences: The risks associated with decision-making without predictive insights can have severe financial consequences, including revenue losses, increased expenses, and a decrease in profitability.