Risk and Decision Analysis
The nature of projects is that they are most often complex and involve a substantial amount of uncertainty. Quantifying the uncertainty can help managers to make more informed decisions with more confidence.
We have developed key services in Contingency, Risk, and Decision Analysis to support effective execution of projects.
Contingency Analysis is ideal for any project, given that there will always be uncertainty regarding the final cost. Traditionally, contingency is allocated to a project budget based on experience, standard practice, and the level of project definition as a percentage of total cost. We apply a quantitative analysis approach to ensure that decisions on contingency allocation can be made with sufficient confidence and backup. This has proven to be a very useful tool for our clients when it comes to decision making and stage-gate approvals.
Project Risk Analysis
Project Risk Analysis takes the Contingency Analysis to the next level, quantifying the effects of reasonable threats and opportunities on the project. This process considers the variability of costs, schedule durations, outside project risks and their collective impact on the project. The results of this Monte Carlo simulation help to define the schedule contingency required to complete the project for a given confidence level as well as the risk reserve budget required. This service is ideal for Clients who require an understanding of the impact of risk and uncertainty on their schedule and budget to make informed project decisions.
Quantitative Decision Analysis
Decision Analysis is useful to help decision makers systematically break down complex problems that involve uncertainty in effort to better define a path forward for making decisions with confidence. Through the analysis, problems are decomposed, modelled over a range of scenarios, quantified for uncertainty, and then measured against performance criteria. Our services are designed to engage subject matter experts from their respective fields and utilize analytical tools to model the problem and alternative scenarios.