Risk Modelling Consultant

Risk appetite varies between industries and sectors, however, consistent principles apply to risk modelling and analysis and the decisions they underpin. Both public and private sector decision makers rely on risk modelling to ensure social, economic, and financial considerations are factored in at all stages of a project or investment lifecycle. Risk modelling tools, such as Monte Carlo Simulation allow a probabilistic model of a real-world process to be developed, ultimately supporting the decision process.

What we do

We assist clients with risk modelling through the use of Monte Carlo Simulation. Through development of bespoke, robust models based on research and analysis, our team can model project and investment risk, enabling clients to understand their risks and make more informed decisions. By understanding key drivers of risk in projects and investments, it is possible to prioritise options that minimise or mitigate risks.

For over a decade, we have prepared complex financial models for diverse projects based on Monte Carlo Simulation. A powerful and versatile computational technique used to understand the behaviour of complex systems and processes by employing randomness and statistical sampling, Monte Carlo Simulation involves generating a large number of random samples from input variables to simulate a range of possible outcomes in a process or system. It is particularly useful for financial modelling of projects where it can be used to evaluate project risks and understand the impact of risk on project value, allowing decision makers to make more informed decisions.

One advantage of Monte Carlo simulation is its flexibility. It can be applied to varied problems and can incorporate any type of probability distribution for input variables, making it a robust tool for dealing with complex, uncertain systems.