Monte Carlo Simulations available in RiskChallenger

With a Monte Carlo simulation, you can not only estimatethose uncertainties but back them up with real data.

Soon, you’ll be able to perform this powerful analysis directly in RiskChallenger: fast, visual, and fullyintegrated into your existing risk register.

‍

What is a Monte Carlo simulation?

A Monte Carlo simulation calculates thousands of possible outcomes of your risk file.
Instead of relying on a single estimate, each risk is simulated thousands of times based on its minimum, most likely, and maximum values for likelihood and impact.

‍

This creates a reliable picture of the range of possible total outcomes:

•           How certain is it that the risk budget is sufficient?

•           What is the most probable overall result?

•           And what happens in the worst(or best) case scenario?

‍

It’s a powerful way to make uncertainty tangible while helping you make better-informed decisions about your risk budgets, priorities, and mitigation measures.

‍

How it works in RiskChallenger

The RiskChallenger Monte Carlo simulation uses random values within the specified ranges for each risk’s likelihood and impact.
For each iteration, it determines whether a risk occurs and what the consequence would be.
This process is repeated thousands of times, after which the results are automatically analyzed and visualized.

‍

The tool provides, among other things:

•           P-values: for example, “In 85% of the iterations, the total risk remains below €450,000.”

•           Charts and visuals: showing which risks have the greatest influence on the total outcome.

•           Scenario analysis: view specific ranges (such as the 85th–100th percentile) and see which risks contribute most to those outcomes.

‍

This gives you instant insight into where your biggest uncertainties lie and which risks deserve the most attention.

‍

Why Monte Carlo in RiskChallenger?

The strength of this new feature lies inits speed and simplicity.

‍

Key benefits:

•           Results in one second: run thousands of simulations instantly.

•            Scenario view: analyze scenarios and compare the contribution of individual risks.

•           Automatic reporting: instantly generate clear visuals and key insights.

•           Fully integrated: no separate tools or complex calculations, everything happens within RiskChallenger.

‍

Availability and licensing

The Monte Carlo simulation will soon be available as an add-on module within RiskChallenger.
For a small additional fee, you can add a powerful layer of data-driven analysis to your risk management process, without the need for extra tools or complex setup (For Enterprise customers, the MonteCarlo module is included in the license).