Probabilistic Cost Estimate

A probabilistic cost estimate incorporates real world risks to your cost estimate to create a more realistic financial forecast. A probabilistic cost estimate also gives you an insight in the risks with the biggest impact on your costs. This greatly improves your project management and increases the chance that you deliver on-time and within budget.

If you want a probabilistic analyses of the financial cost estimate for your project you can follow these steps:

1. Set up a deterministic project planning for your Work Breakdown Structure without the slack for the occurrences of the project risks
2. Set up a cashflow forecast based on your Work Breakdown Structure
3. Set up a project risk register with risk description, likelihood, impact on costs and work package(s) involved
4. Connect deterministic WBS planning, cashflow forecast and risk register on work package
5. Perform a Monte Carlo analyses of the connected forecast

Project Risk Online specialises in project risk management. We support projects around the world with probabilistic cost estimates for projects in IT, infrastructure, energy and construction. If you already have a proper cost estimate and risk register we can do the Monte Carlo analyses for your projects. If required we also can support you with setting up and maintaining your project planning and risk register.

For more information, please contact us at info@projectrisk.online