Sensitivity Analysis

Managing a corporate portfolio of assets is not an easy task. There are numerous factors that influence each other and both the financial and technical complexity of modern asset portfolios require a very strong analytical tool for root cause analysis and sensitivity analysis.

 

Root cause analysis enables asset managers to identify important measures that have a great impact on the technical and financial behaviour of the asset portfolio.

 

Once an important performance indicator is identified it is key to assess the sensitivity of the indicator. Some examples: what are the financial costs if interests increase by .5% annually? How will maintenance costs evolve if the of failure rises by a certain amount in the next 5 years? One can define prognoses about the evolution of prices of energy, personnel, purchasing prices, both maintenance and inspection costs as well as changes in regulatory price settings, depreciation and fiscal policies. The impact of individual indicators can be defined but mostly there exists a complex relationship between multiple indicators. Our analytical Enterprise Asset Management solution will handle complex interactions of multiple factors and allow sophisticated business scenario’s to be evaluated and compared.

Other examples of analysis algorithms:

Read more about the other components of Asset Management:

Strategic Vision  | Corporate Knowledge | Data Consolidation into the Asset Register  | Value Creation