Uses of risk model and simulation in project management
The risk model and simulation contributes to the understanding of specific complex systems and the interdependencies of methods to enable communication among the stakeholders as well as the team members (Willumsen, Oehmen, Stingl & Geraldi, 2019). However, the simulation process provides an essential way of exploring concepts, characteristics of systems and alternatives to open up and facilitate informed decision-making system that leads to the assessment of the entire system. The modeling and simulation get used in the following ways:
- They provide critical insight into the cost of a project, performance, schedule and the risks involved in the process
- It allows the comprehension of the capabilities as well as the requirements of the project
- The risk model and simulation provide the opportunity to collect critical data to help the project management team to make technical decisions based on informed data
- They contribute to improved communication and understanding among the stakeholders of the project. For instance, it is essential to know that the risk model and simulation define the relationship between the system under development and the requirements
- It also enables project management to gain proper methods of analyzing system designs. It is, therefore, easy to understand the reasons for failures and success of the project using the risk model and simulation tools
- It contributes to the higher efficiency in the implementation of the project plan since it is used to reduce the costs and time of the operations of the project
- It is also used to understand the impacts of the project based on the proposed changes. It, therefore, enable the project management team to think about the future in a structured manner
Benefits of risk model and simulation
The benefits of the risk model and simulation include the evaluation of the risks to give a plan for action based on broad scenarios. It leads to expert judgment, accurate collection of data, development, and analysis of data to help the development of the project.
Willumsen, P., Oehmen, J., Stingl, V., & Geraldi, J. (2019). Value creation through project risk management. International Journal of Project Management.