Definition:
Uncertainty Avoidance Index is a means to measure degree to which extent the culture is tolerant of uncertainty and ambiguity. Hofstede’s conceptualised uncertainty avoidance, he developed an index. Uncertainty is a state wherein outcomes and conditions are unknown or unpredictable. Some people are more comfortable with uncertainty than others, and the degree to which individuals participate in certain behaviors to stay in comfortable situations is called uncertainty avoidance. Uncertainty avoidance is one of the five cultural dimensions presented by Geert Hofstede in his 1980 book on the subject, Culture’s Consequences.
Uncertainty avoidance cultures try to minimize the possibility of uncomfortable or comfortable situations by strict laws and rules, safety and security measures. This index measures levels of uncertainty avoidance so that countries could be compared to one another. A low score on the uncertainty avoidance index indicates that the people in the country are more comfortable with ambiguity, more entrepreneurial, more likely to take risks, and less dependent on structure rules. Countries with high uncertainty avoidance scores desire more stability, more structured rules and social norms, and are less comfortable taking risks.
Further Reading:
Book: SUCCEEDING WITH AGILE Software Development Using Scrum by Mike Cohn
https://en.wikipedia.org/wiki/Uncertainty_avoidance