Quantitative Risk Analysis

To enable clients to be “risk aware” and to recognise the risks their projects may face. ZenoE utilise an integrated cost-schedule risk analysis approach as recommended by the Association of Advancement of Cost Engineers (AACE) in their International Recommended Practise No 57R-09.

Historically schedule risk had typically been ignored in cost estimating but tools are available to include a full analysis of the impact of schedule on the uncertainty in cost.

Probabilistic qualitative tools allows one to imitate thousands of hypothetical projects on your project data before it commences. Simply speaking, each such project is an iteration of a Monte Carlo simulation. Each such iteration uses a unique random sampling of possible cost/schedule values defined by corresponding uncertainties.

The integrated cost-schedule risk analysis model developed by ZenoE is as outlined below:

 

Typical model outputs: