The risk of planes crashing due to volcanic ash
When the Icelandic volcano Eyafjallajøkul had a large eruption in 2010 it lead to closed airspace all over Europe, with corresponding big losses for airlines.
When the Icelandic volcano Eyafjallajøkul had a large eruption in 2010 it lead to closed airspace all over Europe, with corresponding big losses for airlines.
Simulation models sets out to mimic real life company operations.
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.
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 …
Strategy @Risk has developed a radical and new approach to the way risk is assessed and measured when considering current and future investment.
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 …