FM0365 : Cost Risk Analysis & Monte Carlo Simulation

This practical and highly-interactive course
includes various practical sessions and
exercises. Theory learnt will be applied using our
state-of-the-art simulators.
This course is designed to provide participants with a
detailed and up-to-date overview of Cost Risk
Analysis & Monte Carlo Simulation. It covers the
purpose and importance of cost risk analysis; the
relationship between cost estimating and risk
management; the cost estimate structure and
classification, base estimate development and
validation; the cost uncertainty, cost risk and
qualitative cost risk assessment; the cost risk analysis
framework, quantitative risk analysis fundamentals
and probability and statistics for cost risk; the
probability distribution selection, cost uncertainty
ranges and discrete risk events; and the correlation
and dependency, Monte Carlo simulation
fundamentals and Monte Carlo cost model.
During this interactive course, participants will learn to
run the simulation, interpret simulation outputs and
apply sensitivity and risk driver analysis; the Monte
Carlo model validation, cost contingency analysis,
confidence levels and cost targets; the integrated
cost, schedule risk and advanced correlation
modeling; the scenario and what-if analysis, risk
mitigation and cost optimization; the complete cost
risk model, cost risk results and risk-based
contingency; and the cost risk information and cost
analysis for decisions.