Certain or Uncertain You may know the values your variables will take in the time frame of your model — they are certain, or what statisticians call “deterministic”. Conversely, you may not know the values they will take — they are uncertain, or “stochastic”. If your variables are uncertain you will need to describe the […]
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 …
The risk is best expressed by using a graph illustrating the probability curve. The slope tells us about the uncertainty involved, the steeper the curve the less uncertainty involved.
Whenever the outcome of a situation is not perfectly certain you have uncertainty or risk.