The paper "Risk Management and Budget Decisions " is a wonderful example of an assignment on management. The main aim of the report is to prepare is budget estimates for staff seminars that will be held for three days. Ten staff members will attend and it will be 10km from the offices. It will be held in a hotel and they will use a hired tour van. In analyzing the risk of the budget plan for the sponsor, @risk software has been used to carry out a Monte Carlo Simulation.
From the simulation, the baseline budget was $16,600.00 while contingency value was $1313. The report has included the contingency fund that ensures their continuity of the project in case there are changes in prices of the costs or there are uncertain occurrences of an event. Project Scope The main aim of the report is to prepare a budget that will enable sponsor support, 10 members of staff, to attend a seminar beginning 11/12/2016 and 14/12/2016. The seminar will be held 10km from the offices; they will be picked up by a hired tour van from the offices.
The sponsor to implement a seminar by incurring a cost of $15,550.00 for 10 employees however this may exceed or reduce if the attendances change. From the simulation of the seminar expenses, most it will be incurred through accommodation and food. This is also the highest budget risk for implementing seminars. Some of the costs will be incurred through the occurrence of an event such as sickness or loss of employee laptops. This will be part of the expenses of the sponsor if carelessness is not proven as part of the employees.
Employees fall sick which is beyond the control of the sponsor during the seminar. The scope of this budget could be summed as shown below, they are Cost elements Accommodation food snacks traveling insurance transport communication expenses equipment sickness property loss car hire expenses stationary other expenses Budget allocations for the above expenses have been done according to available records from previous similar meetings. Accommodation, food, and property loss will take a huge chunk of the seminar costs. For property loss which is a contingency cost, it is estimated that it will cost roughly 18-10% of the total project budget due to the usage of laptops during the seminar.
Lecture notes topic 8, Quantitative Risk Analysis - Introduction to statistics. Risk Management 641
Lecture notes topic 11, QUANTITATIVE RISK ANALYSIS MONTE CARLO SIMULATION. Risk Management 641
Lecture notes topic 12 contingency. Risk Management 641