Sort Risks Into Scenario, Sensitivity, or Monte Carlo
Match project risks to scenario analysis, sensitivity analysis, decision trees, or Monte Carlo simulation.
Place each uncertainty in the risk-analysis bucket that fits the mechanism. Sensitivity analysis Scenario analysis Decision tree Monte Carlo simulation Labor savings per unit may be 10% higher or lower than base case Recession case combines lower volume, slower collections, and price pressure Tax credit is approved, delayed, or rejected before construction starts Weather output varies daily and affects revenue across thousands of possible paths Commodity input price is the one assumption most likely to flip NPV Management can expand only if phase-one utilization clears a threshold High-growth case requires linked assumptions for demand, staffing, and working capital Several uncertain…
Sign up free — one personalized lesson every day, matched to your role and goals.
Already have an account? Sign in