Risk Detective provides a two step process to risk assessment.
Step 1: Sensitivity Analysis evaluates the uncertainty in all your model's inputs to determine the key inputs that control the risk in your financial goals. This step focuses your attention on those uncertain inputs that truly matter.
Rather than a single value, each model input is assigned a range of possible values, from Low to High.
Using each input's Low/High values, your model is recalculated and impact on outputs is measured.
The key input uncertainties will contribute more to the output uncertainty and risk than others.
Easy to use and learn. Adapts to simple to complex analysis tasks.
Step 2: Scenario Analysis examines all combinations of key inputs and their impact on your goals, providing a clearer picture of the value and risk. With this information, you can make an informed decision.
All combinations of key inputs are examined, producing a full distribution of output possibilities, a truer picture of risk and uncertainty than a single value alone.
For Scenario Analysis, you can use a simple collection of key inputs, or create a custom decision tree for more complex situations.