Therefore they think that using computer software is a must to perform the Monte Carlo Simulation. Most of the PMP aspirants find this concept very difficult to understand. It is possible to create various scenarios by changing the range of possibility of risk occurrence.Īlthough the Monte Carlo Simulation is a commonly used technique in risk management, many practitioners are not aware of its importance.
This mathematical approach allows considering the impact of risks during a decision making process. The Monte Carlo method was invented in the late 1940s by Stanislaw Ulam, who named it for the city in Monaco famed for its casinos and games of chance.
