Building Up Detail in a Net Present Value Risk Model

This chapter shows how the following different modelling techniques can be used to build up detail in a Net Present Value (NPV) risk model:

• integration of schedule risk into the model;

• modelling benefits ramp-up risk;

• conditional dependencies;

• compound combinations of risk effects;

• probabilistic dependencies;

• inclusion of event risks identified in a risk register;

• recurrent event risks.