Modeling Risk with Monte Carlo Simulation

Monte Carlo simulation is a powerful technique that can help businesses model and quantify uncertainty. This course covers the basics of Monte Carlo simulation and provides five scenarios to help understand its application in financial modeling. Unlike traditional scenario analysis, which relies on a few "best-case" and "worst-case" scenarios, Monte Carlo simulation allows for the simulation of multiple uncertainty scenarios simultaneously. By using this technique, businesses can more effectively model and assess risk. The course teaches participants how to use Monte Carlo simulation to make better business decisions by quantifying unfavorable scenarios. Through this training, individuals will gain a solid understanding of the basics of Monte Carlo simulation and its applications in modeling uncertainty.