Uncertainty analysis may be applied across every scale of activity in an organization, from a simple decision whether or not to carry out further analysis in the midst of a complex project, to strategic decisions encompassing billion dollar investments in new growth areas. These scales correspond with the professional disciplines concerned with managing at these levels and our services and software are organized to align with these disciplines.
Investment uncertainty analysis for any single project provides a sound decision basis for project initiation and sanction decisions. Furthermore, the business case analysis is crucial for additional value generation through selection of the best available options for the project.
Project risk management analyses individual uncertainties affecting specific project outcomes to optimize the allocation of resources to manage those uncertainties. Factors affecting cost and schedule receive particular scrutiny in order to ensure realistic reporting and the appropriate management of contingency and reserves.
Project portfolio optimization
Optimized projects are themselves the components of a project portfolio analysis, which articulates the effects of project prioritization and phasing on the overall performance of a portfolio of projects. Relative uncertainty is reduced at a portfolio level, allowing for the more efficient management of contingencies and reserves.
Enterprise risk management
Enterprise risk management broadens the analysis scope further to include operational risks as well as extrinsic uncertainties such as political events, health and environmental risks and, market risks affecting demand and price.
Investment portfolio analysis
Investment portfolio analysis maintains this broad scope and differs further from project portfolio analysis in that the emphasis is on choosing in what to invest, rather than managing those investments once executed.
Strategic planning analysis has a similar scope to investment portfolio analysis, but with focus now turned on characterizations of strategic options, forming the basis of a powerful systematic approach to strategy.