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25 June, 23:05

I am conducting risk analysis in which I imagine how an event - an economic depression, for instance - might affect a number of value drivers, and through them the NPV of a project. I repeat this process for several different events: economic boom, industry disruption, legislative interference, etc.

What type of risk analysis is this?

Sensitivity analysis

Breakeven sensitivity analysis

Mean-variance efficiency analysis

Scenario analysis

Monte Carlo simulation analysis

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  1. 25 June, 23:35
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    The correct answer is Sensitivity analysis.

    Explanation:

    Sensitivity analysis is a technique that allows determining the impact of values belonging to an independent variable within a dependent variable under a series of cases or assumptions. What is sought with this is to know in detail the true impact of the risks of each of the events mentioned under certain different events.
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