Measuring Cost Risk Using Monte Carlo Simulation
The goal of this course is to demonstrate how to calculate the cost risks associated with a construction project. The fundamentals of risk management will be reviewed in the first part of the course. The objectives of the project will be presented in the context of corporate financial decisions. The concept of risk will be defined, as will the risk management process.
This course will present how cost risks are typically determined in a large number of organizations in the second part. Inconsistencies in this approach will be highlighted. Then, Monte Carlo analysis will be defined, and its procedure will be presented based on recognized best practices.
The Monte Carlo Analysis will be based on a sample project summary report in the third section. Critical cost accounts, as well as the risks associated with them, will be identified. In the final section, a sub-procedure will be developed to collect the number of iterations from the user, a function will be defined to calculate the total cost for each iteration, and another sub-procedure will be developed to calculate the parameters for the entire number of iterations.
The Excel file and VBA code can be downloaded from the previous lecture. This course is strictly for educational purposes. If you need to apply this to a real-world project, please consult a professional.
Who this course is for:
- Risk management amateur
- Risk management professional
- Cost Engineer
- Managers
- Anyone interested in cost risk analysis
Requirements
- Beginner in VBA
- Beginner in MS Excel
- Beginner in Monte Carlo Simulation
Course ratings: 5.0/5
Enroll here: https://www.udemy.com/course/measuring-cost-risk-using-monte-carlo-simulation/
