What is the first step in the decision support model?

The first step in the decision support model is issue identification. This step is crucial as it lays the foundation for the entire decision-making process. By clearly identifying and defining the problem or opportunity at hand, decision-makers can ensure that the subsequent steps will effectively address the right issues. This includes gathering relevant data and understanding the context of the decision, which is essential for informed analysis later on.

Starting with issue identification allows for a focused approach to decision-making, which is particularly critical in financial management. Without a clear understanding of what needs to be resolved, evaluating alternatives, formulating potential solutions, and implementing a chosen course of action can lead to misguided efforts or ineffective results. Therefore, recognizing and articulating the core issues initiates a structured and logical pathway through the decision support model.