By using Monte Carlo based risk assessment tool, project scope, economic evaluation uncertainties and risks can be identified and quantified. This is a valuable and objective tool to determine main project risks and stay in control. There is maximum client involvement to identify possible threats or opportunities. Our expertise is to make sure all major influences on the economics are considered and both qualified and quantified.
The result is a distribution that shows the most likely economic outcome. Depending on the risk profile, the clients themselves can choose between a risky or less risky approach for a project. Furthermore a sensitivity analysis can be done resulting in a tornado chart offering a top # of (quantified) prominent risks and opportunities. This analysis is a perfect guide for a client to further develop a project or scenario and focus on the areas that provide maximum improvement with the least effort.
Benefits of risk analysis are:
- It provides cost effective method to evaluate decisions before implementing them, nevertheless results are dependent no the quality of the input (garbage in, garbage out) - good input costs time
- It gives both quantitative and qualitative insights in the critical and weak components of the scope and estimate; still this is possible only when risk analysis model data are available
- Modern soft- and hardware makes risk analysis simulation fast and easily accessible
- Finally keep in mind that risk analysis doesn't solve your problems but it does make them visible and interpretable