What are the different risk analysis methods used in Morgan's framework?

What are the different risk analysis methods used in Morgan's framework?

Morgan's framework primarily includes qualitative and quantitative risk analysis methods, such as Monte Carlo simulations and decision trees.

Can you explain how Monte Carlo simulations work?

Sure! Monte Carlo simulations use random sampling to model the probability of different outcomes in a process that cannot easily be predicted due to the intervention of random variables.

What are the advantages of using decision trees?

Decision trees provide a clear visual representation of decisions and their possible consequences, making it easier to understand complex decision-making processes.

Are there any limitations to these methods?

Yes, limitations include the potential for oversimplification in decision trees and the computational intensity of Monte Carlo simulations.

How can I choose the right method for my analysis?

Choosing the right method depends on the specific context of your analysis, including the complexity of the risks involved and the data available.