Stress Testing Projects and Programmes – what are your views?
The origins and treatment of the recent financial crisis is ubiquitous. Acknowledging the sadness of palpable sufferings, its effect is analogous to war /military conflict to technology development; rapid innovations, intellectual debates, cross pollination of thinking, etc.. I want to learn from the financial crisis and in this post; I want to kick start a debate about how Stress Testing that was undertaken in 2009 (USA and UK) and the recent 2010 European Stress Tests. The following question is addressed to Risk Practioneers involved in managing projects and programmes:
- In a programme /project context, do your organisations quantitatively model project cost and time performance using ‘Schedule Risk Modelling’ or ‘Cost Risk Modelling’ using software or otherwise (@Risk, Primavera Risk Analysis, Model Risk…)?
- If you do use Monte Carlo (and variant algorithms), do you undertake Stress Tests?
- If yes, what criteria did you use (if can be shared in public domain)?
- If no, what do you see as a limiter?
- Do you think Scenario Modelling and Stress Testing are the same; or do you differentiate the two?
Hope this topic is of interest….