This week saw me finally finish and submit my contributory chapter to the book ‘The Strategic CFO”, to be published by Springer Verlag. My Chapter is entitled “Linking Strategy, Operations and Finance with Simulation-based Planning Processes”. [Read more…] about The Strategic CFO
Archives for June 2010
Monte Carlo simulation techniques (whether using VBA code, @RISK®, RiskSolver®, or other methods) are often described as being based on the idea of repeated random sampling. In fact, generally speaking, randomness per se is not an objective of Monte Carlo simulation. [Read more…] about Are Random Numbers Really Random?
When using simulation modelling techniques in Excel (such as building models with @RISK® or RiskSolver®), some situations can contain an element of optionality. Examples include those where management can expand/shrink the business if things are going better/worse than originally expected. [Read more…] about Is the use of the risk-free rate a proxy for capturing options value?
May was another busy month, including some simulation modelling training in Sweden and Italy, as well as some internet-based training and some model building consulting work. A course in Rome on food safety modelling highlighted some real challenges in building quantitative risk models in this area…