@RISK Helps Columbia University Students Tackle Global Risks
Students at Columbia University’s School of International & Public Affairs (SIPA) learn to deal with risk on a global level. The class of 2005 came from over 100 countries, and the School’s 11,000 alumni are working in 155 countries around the globe. Many alumni are faced with risk on a local level, a transnational level, and a global level.
Columbia Center for Energy,
Hands-on Risk Analysis Experience
The Power of Risk Analysis
The case for risk analysis and risk management is pretty compelling. One example used in the course is a financial analysis of an oil production project in a developing nation. A static model suggests that the project is a slam dunk. However when uncertain factors such as future oil prices and interest rates are added using @RISK, the model becomes much more interesting. The students learn how the impact of variables such as the global price of oil and lending rates can turn a sure thing into a fiasco. The lesson is to identify risks, understand their impact through modeling, and then implement appropriate changes to the structure of the financing to mitigate risk.
Risk Analysis and @RISK are Essential
Roy Nersesian is the author of several books on finance and risk analysis available through Palisade. In conclusion he states “I don’t see how a manager can be effective without considering the risks inherent in any business decision. In other words, I don’t know how they live without @RISK.”