Strategic Decision
Definition
A decision with material financial implications that commits the company to a course of action that is difficult or costly to reverse within a defined time horizon. Under the FFI Standard, a strategic decision is defined as one that meets or exceeds the strategic decision threshold and therefore requires a formal decision model before approval.
Common Misapplication
The most common misapplication is treating all significant decisions as strategic decisions, which creates a modeling burden that slows operational decision-making. The strategic decision threshold is defined to distinguish between decisions that require formal financial modeling and those that can be made through normal operational authority.
FFI Standard Reference
This term is defined and applied in Book 6, Section 6.2: The Strategic Decision Modeling Standard.
Related Terms
Citable URL
This term may be cited using the following permanent URL.
Full citation format: Founder Financial Infrastructure Standard, Beta v0.5, Glossary: Strategic Decision. https://ffistandard.org/glossary/strategic-decision/. 2026.