QUESTIONS 20 Save As Exploring Risk Measurement As a manger it is important to determine what is driving the success of a project of product What factors could lead to fallure, what stations would be detrimental what kind of loss is expected The risk manager's job is not to find ways to increase improfit, but instead to provide information on where sources of rok may lie and what could occur Read Section 12-5 and watch this video explaining risk management techniques Bik Explanation Links The risk management technique captures how changes in a single input A Sensitivity Analysis are associated with changes in project value B. Monte Carlo Simulation This risk management technique allows a manager to identity drivers of C Scenario Analysis profit and loss for a project This risk management process examines good, bad and base case situations for a project In this measurement technique values for all inputs change at the same time to reflect difference financial circumstances This risk management technique des computer generated random simulation which then generates expected outcomes in this risk assessment the distribution of losses are created using a large number of scenarios and then the probability of a large loss is measured