How can I capture risk and uncertainty using Capital Planning?
Capital Planning employs a discrete scenario approach to represent potential outcomes and the probabilities of occurrence for each variable or activity within a project. Price outcomes are correlated across all projects and then a Monte Carlo simulation is used to generate distributions for each project. These individual project samples are then factored by the shifting and working interest factors to form portfolio distributions. All of these project and portfolio distributions, along with their relevant risk measures, can be viewed using Capital Plannings extensive data mining and charting capability. All names and trademarks are the property of their respective owners.
