Compare and contrast the following risk assessment methodologies: (a) the Delphi technique, (b) sensitivity analysis, and (c) Monte Carlo simulation. Provide a rationale for your response
Delphi technique to identify possible risks that could affect the A&D High Tech Internet store project. The main sources of information for these sessions were the project documentation and WBS.
Delphi technique is used when we have scant data and we seek experts opinion on risks associated with the project.
Sensitivity analysis tries to assess the risk by keeping other variables fixed and studying one variable.
Monte Carlo simulation involves study of several variables at a time
Delphi technique could be used in situations like super conductivity of materials and their deployment.
Sensitivity analysis could be used when certain probabilistic variables are involved using bayesian approach.
If we have fair amount of data, monte carlo simulation can be employed.
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