Quantitative Risk Analysis - is it growing in popularity?
I often see opportunities to use Quantitative Risk Analysis (QRA) as part of my work with clients. Sometimes, people are already familiar with it, at least in concept. Other times, people know nothing about it - which provides me with an opportunity to discuss it with them and to show them the benefits of applying it.
I find QRA beneficial for the clients I work for on numerous fronts, including:
1. It helps people to think through ranges of outcomes (which is an important part of thinking through uncertainty and risk)
2. It gets people to think about quantifying risk, rather than being generic about it
3. Simulations and statistical models, when done well, help people to make risk-informed decisions
When I say "QRA", I am referring to Monte Carlo Analysis, of course, and I am also referring to "decision optimisation". There is a wealth of possibilities that people can unlock by taking the time to understand how QRA can help them to unlock value by optimising the decisions they should take.
QRA is not a crystal ball, of course. Done well, it helps people to think through ranges of outcomes to the uncertainties that they face, and to apply some intelligence to testing their assumptions and looking at decision options.
If you are interested in finding out more about how I approach QRA, please contact me.






