Purchasing Resources for Monte Carlo Simulation As A Risk Management Tool

Monte Carlo Simulation as a Risk Management Tool

Use Monte Carlo Simulation as a risk management tool to develop contingency plans
By Sue-Lynn Carty Monte Carlo simulation as a risk management tool helps project managers to develop contingencies plans on major projects. Since certain circumstances are out of the project manager's control, such as, delivery or manufacturing delays, it's a good idea to have back-up plans in case these situations occur in order to avoid a delay in the completion of the entire project. Developing these contingency plans involves quantifying the risk of adverse situations and delays.

Quantifying risk involves algorithms, probability and statistics, all of which are not simple calculations. Avoid the timely effort it takes to make these calculations by hand by purchasing Monte Carlo simulation software. Here are the basics of what various types Monte Carlo simulation software provides.

1. Monte Carlo stress testing provides possible outcomes to adverse conditions such as manufacturing and delivery delays.

2. Monte Carlo risk management software allows the project manager to assess both global and local risks.

3. Monte Carlo simulation software allows the project manager to calculate differing scenarios of the project's outcome. The three basic scenarios of any project are the best case, worst case and probable outcomes. Inputting variables into simulation software calculates all three scenarios.

Try out free Monte Carlo simulation software before purchasing the full program

Free Monte Carlo simulation software allows you to try out different programs to see which one best suits your company's needs.
Try:  Download a free Monte Carlo simulator from Source Forge, Inc. Get a Monte Carlo simulation download from Softpedia.

Buy the add ins when you purchase Monte Carlo simulation software for Excel

The Monte Carlo simulation Excel and other simulation programs allow for more extensive changes in the inputs and then reports them in a new summary sheet and histogram.
Try:  Get the Monte Carlo simulation for Excel add ins at Cambridge University Press and Ozgrid.

Buy comprehensive risk management software that includes Monte Carlo risk management tools as well

Comprehensive risk management programs allow the project manager to compare the results from Monte Carlo stress testing and other risk management simulations to help develop the best contingency plans for a given project.
Try:  Real Options Valuation, Inc. and GoldSim Technology Group offer Monte Carlo simulation software combined with other risk management techniques.

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