Business Risk and Simulation Modelling in Practice - 9781118904053

The complete guide to the principles and practice of risk quantification

Risk analysis can enhance traditional financial modeling in any decision-related situation, and in some cases, is an indispensable part of the decision process. Business Risk and Simulation Modeling in Practice covers the principles and tools in depth, helping readers gain a greater understanding of effective application in real-world scenarios.

This book provides a practical, comprehensive, and in-depth guide to the industry's fundamental principles and tools. Based on the author's many years in training and consultancy, this book provides real-life solutions to risk modeling applications, demonstrated with highly developed practical models that directly apply to real situations. Coverage includes the use of Excel and VBA, as well as in-depth guidance to Palisade's @RISK Excel add-in, which allows a richer range of models to be built more quickly, flexibly, and transparently. The underlying theory and statistical concepts of risk analysis are covered from a rigorous, yet practical perspective, with a non-mathematical focus accessible to a wide variety of readers. The companion website provides additional resources, including one hundred worked examples and preformatted spreadsheets.

• Understand the fundamental concepts and practices of risk analysis and modeling
• Master the use of Excel, VBA, and @RISK for dependency and correlation modeling
• Learn which distribution fits which scenario, and how to use it appropriately
• Examine example models to better understand the more complex concepts

The quantification of risk is an increasingly important aspect of all forms of decision-making, and is a natural extension of general financial modeling. To be effective, professionals need a firm grasp of both the fundamental concepts and the tools of the trade. Business Risk and Simulation Modeling in Practice provides clear, complete guidance, enhanced with expert perspective.