Monte Carlo Bell - Financial Impact Analysis – Softools

Softools' RiskPlan Monte Carlo - Bell analyses all of your Risks in a scenario based manner, empowering you with a spread of Financial Impacts and associated Probabilities. With this, easily visualise your most likely Financial cost per Risk and improve your forecasting accuracy.

^Monte Carlo - Bell^

Risk analysis if not already, should form a part of every business decision, yet naturally with such decisions comes uncertainty too. This is where a Monte Carlo analysis is at its most useful, using the Best, Worst and Expected costs of Risks, it is able to compensate for uncertain conditions.

Where the peak of the curve (or bell) represents the most likely value, positive or negative to your business, of any random Risk, the surrounding areas right and left represents the costs that are less likely to be experienced. Ultimately seeing all possible outcomes of your decisions and being able to assess the corresponding impact, facilitates better decision making under uncertain conditions and reduced exposure to unnecessary Risk.

X-Axis: Value - The Financial cost of a Risk in a scenario.
Y-Axis: Occurrences - The greater the Occurrences(Y), the more likely the associated Value(X) is.
Top of the Curve: Hover your mouse here for the most likely cost per Risk, based on your entire portfolio.

Select this Report by using the Folders Menu when in the RiskPlan App.

Hover-Over for Precise Values

Hover your mouse over any point on the curve to be presented with precise stats.