Risk control in strategic management projects

  • Authors:

  • Claudia-Georgeta Carstea;Ioan-Gheorghe Ratiu;Neculai Patrascu;Marian Pearsica;Nicoleta David;Dana Damian;Lucian Patrascu

  • Affiliations:

  • Department of Mathematics, Informatics and Socio-Human Sciences, "George Baritiu" University, Brasov, Romania;Department of Mathematics, Informatics and Socio-Human Sciences, "George Baritiu" University, Brasov, Romania;Department of Mathematics, Informatics and Socio-Human Sciences, "George Baritiu" University, Brasov, Romania;Department of Electronics and Informatics, "Henri Coanda" Air Force Academy, Brasov, Romania;Department of Mathematics, Informatics and Socio-Human Sciences, "George Baritiu" University, Brasov, Romania;Department of Mathematics, Informatics and Socio-Human Sciences, "George Baritiu" University, Brasov, Romania;Department of Economics, "George Baritiu" University, Brasov, Romania

  • Venue:
  • MAMECTIS'08 Proceedings of the 10th WSEAS international conference on Mathematical methods, computational techniques and intelligent systems
  • Year:
  • 2008

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Abstract

One of the most important targets of the leadership is preventing and identification of the errors and frauds. The cost of the possible control measures must be compared with the probability of appearance of such fraud or error and the consequences. The evaluation system offers the leaders the required data necessary for the administration of that business. But it's still the job of those being in charge to create and launch such a system. Risk quantification is the process of measuring the probability of a risk and its impact on project objectives. Unlike risk assessment, risk quantification aims to produce verifiable numerical values. Risk quantification typically uses techniques such as Monte Carlo simulation and decision analysis to determine the cost and schedule contingencies that will be required, based on the levels of uncertainty (= risk) in the various components of a project; to determine probabilities of completing within a certain cost or by a certain date; to identify realistic project targets (cost, schedule, functionality, quality).