Tag Archives: Monte Carlo
Black swan events are so fascinating that they are a common source of discussion in many risk management forums. The variety of perspectives coming from all directions never ceases to amaze.
To a risk manager, ‘black swan’ phenomena are highly unlikely events that have massive impacts on a business or society on the rare occasions they occur. It means that the event is unexpected, but is of huge consequence (Ferguson, 2014). There is no scientific way at present to predict black swan events reasonably and acceptably.
A person’s perspective depends on which side of the fence they are sitting on. With that in mind, a risk can be a threat or an opportunity. Your business sees a threat and your competitor sees an opportunity. It is as simple as that.
Each individual player within the risk universe will see things a bit differently compared to the next person, with some people interpreting things in exactly the opposite fashion. In each case, the person can see only one attribute.
The simplistic objective point of view is that risk is either a threat or an opportunity, depending on the observer’s orientation to the goal. Continue reading
One has to remember that a schedule is a time estimate. It is not the exact actual time value at the time. Experienced professionals try to provide a plausible estimate. Nobody really knows what would be the definitive value.
ML date (or most likely duration) is not the same as expected date (or expected duration). It is but a component of the expected value. With the three point estimates (Triangular or Beta) available, one can calculate the expected duration of an activity, a group of activity, and the whole project’s duration.
It is one of the questions asked more often in risk-based planning and scheduling. Project directors, managers, planners, and schedulers have to know what this term means.
Each time a scheduler tries to explain the concept, he easily gets lost in his own circumlocution. It might be his indirectness compounded by the fact that this particular term shares common but blurred boundaries with some other project and risk management terms.
In view of such difficulties, let us put their words and thoughts on paper so that project practitioners can better understand. Continue reading
Faced with a question on how one would analyze a problematic situation on the spot without going to any existing analytic templates and guidelines, the PIRCAD approach was born. The acronym is odd sounding but easy to remember. It simply … Continue reading
By this time, you should have read the first part of “Risk as a Funtion of Time.” Let us get back to the “time component” of risk and answer a simple question made by a Transport Manager operating the Red … Continue reading
I have just delivered a short presentation in a University project management course under sponsorship of a local oil and gas company when a student followed me out to ask about risk as a function of time. It is amazing … Continue reading
“Risk-based Management in the World of Threats and Opportunities” is now available in paperback and kindle editions. Check it out and grab a copy! https://youtu.be/wxWgYUhiWos This book provides new/additional knowledge to project management practitioners (beginners to experts), risk management specialists, … Continue reading
Our Risk Universe is vast and many frontiers remain untested. Your world is the midst of it. Your world, our risk universe! Places, events, people, processes continue to change and puzzle us, even in what we might perceive as something familiar. To understand the … Continue reading