Accessible risk management using workflow simulation into Microsoft Excel

Abstract

We live in a digital era. Nowadays almost all accounting and production project information are collected into long electronic spreadsheets that are easily accessible for the production managers so they can extract the data and analyze it according to their needs. In every work project, especially in long project production, IT or manufacturing, there is the need to perform an elaborated risk management, just because there is a gap of uncertainty from the process of planning to the final workflow cost. One main task that often causes problems is the quantitative risk analysis. In this article we will show how to use a well-known standard product, that is easily accessible even to micro entrepreneur – Microsoft Office/Excel. With the help of MS-Excel it will be cost effective and easy to extract the data and create standard risk simulations, which will help managers to take decisions and reduce their risk exposition.

Keywords

• risk management
• monte carlo simulation
• workflow
• interface
• stochastic factors