How Does Sensitivity Analysis Relate To Contingency Planning? What Are Several Risk Mitigation Strategies That You Could Implement To Desensitize These Variables?

Question

How Does Sensitivity Analysis Relate To Contingency Planning? What Are Several Risk Mitigation Strategies That You Could Implement To Desensitize These Variables?

2 Answers

Answer Question

Answer 1

Well dear!
A sensitivity analysis is shown by assessing the impacts of the components availability in the model and then the degradation of ending up the capability over time. On the basis of such sensitivity analysis the companies make the decisions about the responsible parties, about the contractors, governmental organizations and others. Therefore, we can say that it directly relates with the contingency planning. There are a number of risk mitigation strategies, and click here to view them:
Risk mitigation strategies

Answer 2

It relates to contingency planning because in sensitivity analysis, you study the change in the outcome of a situation due to some change in the parameter. This way you can find out what factors are going to affect the final outcome the most. After finding out the factor and its outcome, you can formulate a contingency plan for the future to tackle the situation if it occurs. So this way you are prepared for the worst case scenario and have a plan in advance.