What is most appropriate quantitative risk management tool in Perform Quantitative Risk management
Mansoor MustafaSenior PM| Government DepartmentRawalpindi Punjab, Pakistan
In risk management processes, various tools are used in Quantitative risk management process. Is it sensitivity analysis or Monte Carlo analysis. There are few more like Latin hypercube? Saving Changes...
It really depends on the situation - availability of expert judgment, historical data and the confidence using one or more of these tools will all influence which one is the best. Expected Monetary Value is a fairly easy tool to use and doesn't necessarily require the most accurate historical data or a high level of subject matter expertise. Sensitivity analysis will usually require a better set of data to work with.
Kiron Saving Changes...
Mansoor MustafaSenior PM| Government DepartmentRawalpindi Punjab, Pakistan
Kiron thanks for your reply Saving Changes...
Stéphane ParentSelf Employed / Semi-retired| Leader MakerPrince Edward Island, Canada
The beauty of EMV is that it can easily be used for any type of decision making. Saving Changes...
Sensitivity Analysis tell you how your output is dependant/sensitive on an specific input.
So you can have a Sensitivity Analysis on your Monte Carlo simulation. Saving Changes...
