TECHNICAL ISSUES IN CORRELATIONS

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  • April 8, 2015
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The following lists some key correlation effects and details that will be helpful in modeling: Correlation coefficients range from –1.00 to +1.00, with 0.00 as a possible value. Typically, when we … Continue Reading →

CASE STUDY: EMPLOYER SPONSORED HEALTHCARE INSURANCE; REAL OPTIONS STRATEGIES, ANALYTICS, AND THE U.S. AFFORDABLE CARE ACT1

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  • April 1, 2015
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The United States passed major healthcare reform legislation in March 2010, hereafter referred to as the Affordable Care Act (ACA). It is complicated and has many moving parts. Figure 14.149 … Continue Reading →

EXTREME VALUE THEORY AND APPLICATION TO MARKET SHOCKS FOR STRESS TESTING AND EXTREME VALUE AT RISK

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  • March 25, 2015
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Economic Capital is highly critical to banks (as well as central bankers and financial regulators who monitor banks) as it links a bank’s earnings and returns on investment tied to risks … Continue Reading →

COMPLIANCE WITH GLOBAL STANDARDS: BASEL, COSO, ISO, NIST, & SARBOX

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  • March 18, 2015
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The Enterprise Risk Management (ERM) methods deployed by any organization should at least consider compliance with global standards if not exactly mirroring COSO (Committee of Sponsoring Organizations of the Treadway … Continue Reading →

INTEGRATED RISK MANAGEMENT WITH PEAT

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  • March 11, 2015
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This whitepaper showcases a capstone analysis of a portfolio of projects that applies all of the Integrated Risk Management® (IRM) steps introduced by Real Options Valuation, Inc. Before diving into the … Continue Reading →

Dynamic Evaluation of Enterprise Risk Management at Eletrobras Furnas in Brazil1

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  • March 4, 2015
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This white paper is intended to describe the methodology applied in automating Enterprise Risk Management (ERM) for Eletrobras Furnas, the largest utility company in Brazil. The ERM approach uses Real … Continue Reading →

ENTERPRISE RISK MANAGEMENT

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  • February 25, 2015
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Enterprise Risk Management (ERM) in an organization includes the business processes and methods used to identify and manage risks as well as seize upside opportunities to achieve its objectives. ERM, therefore, provides … Continue Reading →

DYNAMIC PROJECT MANAGEMENT WITH COST AND SCHEDULE RISK

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  • February 18, 2015
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In the world of project management, there are essentially two major sources of risks: schedule risk and cost risk. In other words, will the project be on time and under … Continue Reading →

ANALYSIS OF SALES FORECAST AND PERFORMANCE RISK

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  • February 11, 2015
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Sales Plan Uncertainty The lifeblood of every commercial organization is the revenue stream that pays its expenses and funds its growth. No organization can survive for long if the capture … Continue Reading →

Dynamic Simulated Decision Trees

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  • February 4, 2015
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One major misunderstanding that analysts tend to have about real options is that they can be solved using decision trees alone. This is untrue. Instead, decision trees are a great … Continue Reading →