Considering a risky project?
We have described some critical investment cases for which we recommend doing a stochastic analysis.
Depending on where you are coming from, there are a number of basic use-cases in which the method is directly applicable:
Do you require an independent project analysis?
- You are considering an important investment and you would like a thorough, independent investigation of the project.
- The investment cannot be properly analysed using standard scenario analysis or you want explicit formulation of the riskiness of the investment.
- You have an existing setup and want to see how the new project will impact your financial situation.
- You need to adapt your existing static financial planing to properly accommodate a new situation.
Would you like a profound second opinion?
- You are the investor and you are doing a thorough due diligence on one or multiple investments. You know the investmentsinside out but are afraid of project myopia. You want a sounding board and second opinion with a different perspective.
- You work on a board that has to decide on a major investment project. The responsible function has prepared an investment case. The importance of the project warrants an independent second opinion.
Do you need explicit risk modelling?
- You want decision support that reflects your specific situation and you want the numbers in their proven form, but with a risk dimension attached.
- You want your full set of financial reports (BS, IS, Cash Plan) to reflect the riskiness of your business.
- You want to have capital market style risk management for direct/project investments.
- You want to optimally configure an uncertain project in time.
If one of these scenarios use-cases apply to you, you will hopefully like what we present on the rest of this website. Please see for example the tool intro to get further insights.