Project Risk Analysis Software and Project Risk Management Software Forum

We are just starting our project risk analysis process and would like to set some standards for the number of iterations. Are there any guidelines for this?

First, you can set the number of iterations for the Monte Carlo simulations in the Project Options>Calculations.



There are really no standards for the number of iterations to set, but here are a couple rules of thumb.

If you require quick estimates and are looking for results closer to the mean such as standard deviation, you can use the convergence settings as found in the Monte Carlo parameters options. When convergence is on, RiskyProject monitors the simulation and it will stop the iterations when the mean and standard deviation are not changing significantly.

If however, you have a more complex project with risks with low probabilities or are looking to measure the results at the boundaries, you will need to run more iterations for Monte Carlo simulations so that the analysis captures the impact of unlikely conditions or events. In this case, you may want to run up to 3000 iterations which is set using the Maximum number of simulations box. As the latest generation of software and hardware is much faster, this is less of a concern than it was even a couple of years ago.