Are We Evaluating Risk Properly?
There is an intricate 30-year City plan to procure a $ 120MM new high school. It is risky because there are so many steps in the plan and each step has risk. The risks have been identified and there are mitigation plans to help keep each risk from occurring, but there is little or no contingency planning for the situations if the risks were to come true. Some call this stress testing, sensitivity testing or modeling. For example, the City says the worse consequence of many of the risks would be that taxpayers would have to pay the $ 7.4 MM bond payment every yearRead More →