Risk management and decision tool for Excel

Risk Analyzer in detail

If you are evaluating an investment proposal, a new business, a budget, or any proposal involving financial risk, then the Risk Analyzer for Microsoft Excel is the tool for you.

The Risk Analyzer gives you tables and graphics that illustrate the risks of the proposal. Word and PowerPoint presentations using these calculations and graphs show that you have looked at the upsides and downsides of your proposal.

The Risk Analyzer is the easiest to use decision and risk analysis software tool that one can find. It is extremely fast, flexible, and completely menu driven.

Risk Analyzer for Excel: Analysis Features

Risk Analyzer for Excel - analysis

Create a Risk Analyzer premises and reports workbook

• Add or remove input or output range names
• Specify title rows and columns for multi-cell output range names

Define / change input range name probability distributions

• Create input cells probability distribution report
• Create output cells sensitivity reports

Run simulations

• Create or update output reports & histograms
• Consolidate results into one table
• Create funnel charts - graphs of multiple related output cells

Risk Analyzer for Excel: Other Features

Risk Analyzer for Excel - other

• Key steps in using the Risk Analyzer
• About input and output range names
• How to create range names
• Go to an output or input range name
• About range names and formulas
• Trace formula precedents of a range of cells
• Trace cell dependentsof a range of cells
• Clear trace arrows
• Set model input cells to a specific range
• Set model input cells back to study values
• Create input variables assessment forms

How it works

The Risk Analyzer works by doing Monte Carlo simulations.

Monte Carlo simulation is simply the creation of many what if cases to determine the expected results of your study.

You do not need to know statistics or how to write probability formulas in order to use the Risk Analyzer. And, you do not need to embed complex formulas into your workbooks.

All you need to know is what values your input variables are likely to have: the minimum and maximum values, and are the distributions uniform, normal, or skewed in one direction or another.

The following illustrates the different types of distribution that are available:

The results are presented to you via graphs and tables that will be readily understood by your management, investors, partners, or bankers.

The following illustrates just one of the output graphs created by the Risk Analyzer:

In addition to results charts like the above, the Risk Analyzer also gives you histograms showing cumulative probabilities and charts that show the sensitivity of the output variables to your input variables.

Key features of the Risk Analyzer for Excel

• Completely menu driven for ease to use
• Designed and written by users for users
• Easy to learn - you do not need to attend expensive training courses costing thousands of dollars to learn how to use
• No annual support contract to talk to a support person for help required. If you need help, just call us.
• Three example files (not just one or none) with step by step instructions that show you how to use the Risk Analyzer and an extensive help file with further instructions
• No formulas or functions are put into your workbooks, allowing you to continue to share your workbooks with others and they don't have to purchase a copy of the software
• Your input and output variables (cells) are listed on a special premise sheet for you to see and review versus no list at all
• Customizable probability distributions that you can modify interactively
• All probability distributions have minimum and maximum allowed values so that you do not get extreme, unrealistic values used in your studies
• You can have up to 255 input and output variables in any simulation study!
• A worksheet is created that lists all the simulations - each row has the values of all the output variables and input variables
  • Easily set your workbook to the values in any simulation so that you can check our your model
  • Easily set your workbook back to its original values once you care done!
• Easy to understand reports on each of your input variables showing you key value points and the probability distribution curve
• You can create multiple different distributions on any input variable and decide which one to use when you do an analysis
• Selectively pick which input variables to use when doing a Monte Carlo analysis so that you can easily do what if studies on any subset of your input variables
• Very, very fast - do thousands of evaluations in minutes. Do just the number of simulations that you need, bit it just a 1000 or 65,000
• Easy to understand reports on your output variables, with what if capability (type in a value and see what the probability of occurrence is for that value)
• Customizable histograms so that they have the step size, number of bins (bars), and minimum and maximum values that make them easy to understand and use
• The Risk Analyzer add-in is loaded only when you need it versus being loaded all the time
• Compatible with Excel 97, 2000, XP (2002) and 2003
• Easy to use installation program
• Free upgrades as we add in features our users suggest
• Reasonably price

Risk Analyzer - Sample Model and Reports (all PDF format)

• Excel model of a construction estimate and profit - constructed by the user

The following are all constructed by the Risk Analyzer based on user input in the Risk Analyzer menus

• Sample risk premises worksheet
• Sample Input Variable Distribution Report
• Sample output sensitivity graph
• Sample output sensitivity table
• Sample simulation results
• Sample total estimate results

See also in "Excel - Financial related add-ins & tools"

• Loan Assistant - Financial tool for managing loans in Excel.
• Sensitivity Analyzer - Calculate & process Excel data far faster.