Probability Impact Graph Archives

Estimating risks, time and cost of a project

Estimating risks, time and cost of a project Recently we have been asked to review a risk assessment that shored a probabilistic contingencies (cost and schedule) analysis, such as, for example, the AACE International Recommended Practice No. 57R-09, Integrated Cost and Schedule Risk Analysis Using Monte Carlo Simulation of a Critical Path Method (CPM) Model. The client realized that common approaches such as: Probability Impact Graph based on indexes, “simplistic” definition of probabilities and consequences, and even poorly defined Monte…