Question

The Module 8 readings discussed probabilistic risk analysis and presented various statistical and probability concepts that illustrated that the consequences of engineering alternatives can never be known with certainty (such as Monte Carlo simulation techniques and decision tree analysis). Cash inflow and outflow factors, along with project life, were modeled as a discrete and continuous random variable. In your opinion, how do you think risk can best be managed or controlled

Answer 1

Risk can be overseen or constrained by being completely aware of the goals of the association or a specific transaction and intently follow the advancement. Contingent on the risk factors, the size of the exchange or the significance of the business thought the survey time frame can be saved for littler periods i.e. month to month or quarterly instead of yearly.

This will help in unmistakably and impartially taking a gander at a risk from the earliest starting point and taking proactive activities to limit it.

While the factual and likelihood ideas can help in making some comprehend of the circumstance and aiding in taking a choice, anyway the human experience and ceaseless following can go far in limiting risk.

Also, the familiarity with the worthy risk i.e a predictable treasury or risk strategy ought to be followed. This implies once a specific degree of risk limit is crossed, the organization needs to make the necessary move according to approach. The activity can be squaring off a position, supporting a position and so on.