Project Management Central

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Topics: Benefits Realization, Risk Management
To what extent you connect your quantitative risk analyses to your investment performance?

Working on intensive capital / long term investment industry, it was always clear to me that whenever we do a review on the Risk Analysis going full cycle to the Monte Carlo simulation and its results, we should feed those results into our NPV spreadsheet and calculate those economic indicators as well.

It is your practice to do so? Are both processes linked? Because if we do our Project risk analysis to avoid threats and embrace opportunities to enhance objectives of the Project, it should yield results to the economics as well, right?

I see this connection mostly done before the final Project sanction. What is your take on that? Let me know.

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