Our approach
Integrated Risk Management (IRM) assesses the total uncertainty – and thus the total risk – of an investment. IRM models the uncertainties in the cash flow elements (e.g. costs, availability, schedule, etc) and describes the total effect on relevant investment decision criteria, such as Net Present Value (NPV), Internal Rate-of-Return (IRR), Break-even periods, etc. This improves the understanding of the impact of risk drivers, and leads to a better starting point for managing the risks of the investment project that typically follows the investment. The integrated models cover all phases of the investment in a life-cycle perspective.

IRM is specifically designed for studies of:

• Entirety approach (total uncertainty – upside and downside)
• Integrated technical - economic studies
• Concept selection
• Flexibility and robustness of different concepts or investment alternatives
• Cost-benefit assessment of new technology
• Value of new information
• Valuations of real options

Benefits

• Allows for a full probability distribution for the decision indicators, covering both downside and upside risk
• Provides a more correct description of the total risk is produced
• Allows the major risk drivers and their underlying causes and knock-on effects can be analysed