The significance of uncertainty for a decision situation depends on the cost of
reversing a commitment once made. It is especially when high uncertainty is
coupled with high cost that uncertainty needs to be acknowledged and allowed
for in any risk analysis (Rosenhead, 1989). According to Hertz and Thomas
(1984) risk means both uncertainty and the results of uncertainty. That is, risk
refers to a lack of predictability about structure, outcomes or consequences in a
decision or planning situation. In this case, how certain is the decision maker
that the goods will arrive safely at destination after the selection of a particular
multimodal transport solutions? The term ``risk analysis’’ is used here to denote
methods, which aim to develop a comprehensive understanding, and
awareness of the risk associated with the decision involved in the selection of
multimodal transport corridors. Moskowitz (1987) stated that all decision
problems have certain general characteristics. These characteristics constitute
the formal description of the problem and provide structure for solutions. The
decision problem involving combinations of transport modes for exporters in
Lao PDR may be represented in terms of the following four elements: