//Home/Services & Software/Services/Risk Informed Decision Making/Method

 

 

Method
 

How does RELCON optimise processes/investments?

  1. Identify risks/problems – Break up the risks/problems in a process/investment. Evaluate and prioritise risks/problems using qualitative/semi quantitative analyses.
     

  2. Analyse solutions - identify, analyse and Evaluate different solutions to the prioritised risks/problems. To handle the most complex risks/problems models are created were input uncertainty and dependencies between parameters are taken into account. Created models are simulated extensively to stabilise the result.
     

  3. Manage risks/problems - the calculated results, the evaluated risks/opportunities and the sensitivity analyses from step 2 give an explicit and useful basis for the decision making processes. Strategies can be worked out to optimise resources - i.e. strategies where the profitability is improved and the risk level is controlled or reduced.


Click the thumbnail to see an image describing the method.

A model is created for a complex process/investment and uncertainty distributions are defined for the different input parameters in the model. Dependencies between parameters are taken into account. The model is simulated extensively to get stable results. The result is presented with risks/possibilities represented by a distribution. Sensitivity analyses show the different parameters´ impact on the results.

The analyses with the method described above give the opportunity to successfully accomplish the third step in the Risk Management process: To Manage Risks. The optimal combination of result and level of risk can be found for different alternatives. Alternative solutions can be evaluated and prioritised. There are many important questions to answer in the Risk Management process and the results from the analyses help management to come to risk informed decisions.

Back to top