The PEAT ERM system also allows for the creation of Risk Simulations of the user’s risk register element input assumptions via ranges (e.g., minimum, most likely, maximum, average, standard deviation, location, scale, range, percentiles) and returns probabilistic distributions of the individual risk elements or rolled-up risks by categories (output metrics include risk element count, KRI sum, sum and count of risk register elements within a risk category, total risk dollars, total risk mitigation cost, etc.). These probability distributions are automatically generated based on the user’s total and residual risk inputs and can be modified and updated as required in the Set Input Assumptions section (Figure 2.29). The Simulation Results show the simulation statistics and distribution of the result (Figure 2.30). Additional analyses such as distributional Overlay Results (Figure 2.31), Analysis of Alternatives (Figure 2.32), and dynamic Risk Sensitivities (Figure 2.33) are also available.

Figure 2.26: Tornado Analysis on ERM Risk Register Elements

Figure 2.27: Risk Scenario Settings

Figure 2.28: Risk Scenarios

Figure 2.29: Risk Simulation Assumptions

Figure 2.30: Risk Simulation Results

Figure 2.31: Risk Simulation Overlay Comparison

Figure 2.32: Risk Analysis of Alternatives

Figure 2.33: Risk Sensitivity


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