Stochastic simulation

The risk of planes crashing due to volcanic ash

The risk of planes crashing due to volcanic ash

This entry is part 4 of 4 in the series Airports

When the Icelandic volcano Eyafjallaj√łkul had a large eruption in 2010 it lead to closed airspace all over Europe, with corresponding big losses for airlines.

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Introduction to Simulation Models

Introduction to Simulation Models

This entry is part 4 of 6 in the series Balance simulation

Simulation models sets out to mimic real life company operations.

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Uncertainty modeling

Uncertainty modeling

This entry is part 2 of 3 in the series What We Do

We know that forecasts based on average values are on average wrong. In addition will deterministic models miss the important uncertainty dimension that gives both the different risks facing the company and the opportunities they bring forth.

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Two letters

Two letters

Dear S@R, I am not interested in the use of stochastic models, and particularly Monte Carlo simulations. I believe that these approaches too often lead to underestimating risks of extreme events …

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Corporate Risk Analysis

Corporate Risk Analysis

This entry is part 2 of 6 in the series Balance simulation

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

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The weighted average cost of capital

The weighted average cost of capital

This entry is part 1 of 2 in the series The Weighted Average Cost of Capital

The weighted cost of capital and the return on invested capital are the most important elements in company valuation, and the basis for most strategy and performance evaluation methods …

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