Strategy @ Risk

Understanding risk, creating value

It is Thursday, March 11th 2010, at 2:15 am

Corporate risk analysis

WACC, Uncertainty and Infrastructure Regulation

Calculating Wacc for a company for a number of years into the future is not a trivial task. Wacc is no longer a single value, but a time series with values varying from year to year.

2010 © | S@R | 0 comments | Continued

Concession Revenue Modelling and Forecasting

Concessions are an important source of revenue for all airports. An airport simulation model should therefore be able to give a good forecast of revenue from different types of concessions.

2009 © | S@R | 0 comments | Continued

When in doubt, develop the situation

Planning for an uncertain future is a hard task, but preparing for it by adapting to the uncertainties and risk uncovered is well within our abilities.

2009 © | S@R | 0 comments | Continued

Top Ten Concerns of CFO’s – May 2009

A poll of more than 1200 senior finance executives by CFO Europe together with Tilburg and Duke University ranks the ten top external and internal concerns.

2009 © | S@R | 0 comments | Continued

The fallacies of Scenario analysis

Scenario analysis is often used in company valuation – with high, low and most likely scenarios to estimate the value range and expected value – but do they give correct answers?

2009 © | S@R | 3 comments | Continued

Airport Simulation

The basic determinant of an airport’s economics is the passenger forecast. It is the basis for estimation of aircraft movements, investment in terminal buildings, traffic charges, tax free sales etc.

Budgeting involves personal judgments about future values of large number of variables like; sales, prices, wages, down- time, error rates, exchange rates etc. – variables that describes the nature of the business.

Corporate Risk Analysis

Strategy @Risk has developed a radical and new approach to the way risk is assessed and measured when considering current and future investment.

Real options

In real life both for investment decisions and in valuation of companies there are managerial flexibility in the sense that at future points of time there is flexibility in choosing among alternatives.