This case study outlines how a property development company analysed uncertainty as an input to a Board decision. The development was an attractive opportunity with retail, commercial and residential components.
The case contains an extensive discussion about correlation and the levels of detail in quantitative models. In particular, it describes practical ways to simplify the structure of property development models to include uncertainty estimates in a reasonable way, to overcome problems associated with the inherent complexity of many of them.
It also notes the importance of setting workshop agendas to make it easy for senior executives to participate.
Read the full case study here.