Risk, Operational Readiness and Monte Carlo Simulations
About the Course
Risk, Operational Readiness, and Monte Carlo Simulations
The course will offer a deep understanding of why projects fail, and the tools required to minimize financial/overall project risk. A detailed model of Operational Readiness will be covered, including how to assess based on the model. And finally, an introduction to Monte Carlo simulations with exercises to understand how to set them up and use the information properly.
What is Operational Readiness and Assurance (OR&A)?
Operational Readiness and Assurance (OR&A) is designed to ensure that the capital project/asset being delivered is capable of an effective start-up, ramp-up as planned, and a sustainable productive operation. Includes understanding and elements of assessment. Provides a foundation for successful project management.
What are Monte Carlo Simulations?
Rather than use point estimates to make financial / time-based decisions, a simple technique of applying minimum, maximum, and most likely values is used. This range of values is then used in simulation software to create an expected output for the project. The output is a much stronger understanding of the probable output (time and money) and associated risks.