RISK MANAGEMENT AND FUZZY LOGIC 1. Introduction

The use of fuzzy logic is the advantage especially at decision making processes where the description by algorithms is very difficult and criteria are multiplied. The advantage is that the linguistic variables are used. The fuzzy logic measures the certainty or uncertainty of membership of element of the set. Analogously the man makes decision during the mental and physical activities. The solution of certain case is found on the principle of rules that were defined by fuzzy logics for similar cases. The fuzzy logics belong among methods that are used in the area of decision making of firms and offices.