QUESTION 8 Exploring Risk Measurement As a manger, it is important to determine what is driving the success of a project or product. What factors could lead to failure, what situations would be detrimental, what kind of loss is expected. The risk manager's job is not to find ways to increase firm profit, but instead to provide information on where sources of risk may lie and what osses could occur. Read Section 12-5 and watch this video explaining risk management techniques: (Risk Explanation Link) This risk managemenr technique captures how A. Monte Carlo Simulation changes in a single input are associated with B. Sensitivity Analysis changes in project value C. Scenario Analysis This risk management technique allows a manager to identify drivers of profit and loss for a project This risk management process examines good, bad, and base case situations for a project In this measurement technique values for all inputs change at the same time to reflect difference financial circumstances This risk management technique uses computer generated random simulation which then generates expected outcomes In this risk assessment, the distribution of losses are created using a large number of scenarios and then the probability of a large loss is measured