Business Risk and Simulation Modelling in Practice: Using Excel, VBA and @RISK

  • 8h 32m
  • Michael Rees
  • John Wiley & Sons (UK)
  • 2015

The complete guide to the principles and practice of risk quantification for business applications.

The assessment and quantification of risk provide an indispensable part of robust decision-making; to be effective, many professionals need a firm grasp of both the fundamental concepts and of the tools of the trade. Business Risk and Simulation Modelling in Practice is a comprehensive, in¨Cdepth, and practical guide that aims to help business risk managers, modelling analysts and general management to understand, conduct and use quantitative risk assessment and uncertainty modelling in their own situations. Key content areas include:

  • Detailed descriptions of risk assessment processes, their objectives and uses, possible approaches to risk quantification, and their associated decision-benefits and organisational challenges.
  • Principles and techniques in the design of risk models, including the similarities and differences with traditional financial models, and the enhancements that risk modelling can provide.
  • In depth coverage of the principles and concepts in simulation methods, the statistical measurement of risk, the use and selection of probability distributions, the creation of dependency relationships, the alignment of risk modelling activities with general risk assessment processes, and a range of Excel modelling techniques.
  • The implementation of simulation techniques using both Excel/VBA macros and the @RISK Excel add-in. Each platform may be appropriate depending on the context, whereas the core modelling concepts and risk assessment contexts are largely the same in each case. Some additional features and key benefits of using @RISK are also covered.

Business Risk and Simulation Modelling in Practice reflects the author¡äs many years in training and consultancy in these areas. It provides clear and complete guidance, enhanced with an expert perspective. It uses approximately one hundred practical and real-life models to demonstrate all key concepts and techniques; these are accessible on the companion website.

About the Author

MICHAEL REES is an independent consultant and trainer for financial modelling. He works for a wide range of clients, including major corporations, private equity firms, fund managers, strategy consultants and risk management consultants.

In this Book

  • The Context and Uses of Risk Assessment
  • Key Stages of the General Risk Assessment Process
  • Approaches to Risk Assessment and Quantification
  • Full Integrated Risk Modelling—Decision-Support Benefits
  • Organisational Challenges Relating to Risk Modelling
  • Principles of Simulation Methods
  • Core Principles of Risk Model Design
  • Measuring Risk using Statistics of Distributions
  • The Selection of Distributions for Use in Risk Models
  • Creating Samples from Distributions
  • Modelling Dependencies between Sources of Risk
  • Using Excel/VBA for Simulation Modelling
  • Using @RISK for Simulation Modelling