Search
  • Duncan

Monte Carlo analysis - an essential tool for all risk managers

Monte Carlo analysis is a technique to help quantify the outcomes of uncertain inputs, events and assumptions, and can be used in any sector and by any size organisation. Monte Carlo can be used in risk analysis to produce meaningful and actionable information for decision-makers.


I'm delighted to share a recent article I wrote introducing Monte Carlo to a public sector audience who are used to assessing risk using matrices and heatmaps. Hopefully leaders and risk managers will see the value of using data rather than colours and labels to describe risk, and see how they can use this information to support people make better decisions and help the organisation achieve its objectives.


Hat tips to David Vose Doug HubbardAlexei Sidorenko, CRMP whose resources are invaluable for people looking to improve how risk management is carried out.


#risk#riskmanagement#montecarlo#riskanalysis#publicsectorrisk#2020riskmanagement


Go Monte Carlo was published in Spring 2020 stronger, ALARM's member journal. ALARM is a membership organisation run by members, for members, supporting risk professionals that support our communities and citizens. For more information, please visit alarmrisk.com.


2020 stronger article - Go Monte Carlo
.p
Download P • 278KB

48 views

Recent Posts

See All

Risk management horror stories

There are plenty of horror stories from the world of risk management out there. I’m not talking about bad decisions, poor strategies, mistakes or accidents, but rather cases where people have not thou

What risk management software?

While helping organisations strengthen their risk management arrangements we’re often asked what software do we recommend for risk management. The unfortunate fact is that there are many products out

© 2020 Risk Management Ltd 

Registered in Scotland SC618911

Registered office 43 Millside Road, Peterculter, AB14 0WG