Risk Analyzing

Obtain a

Density Function

The Enterprise Risk Manager obtains the risk function

The Enterprise Risk Manager finds out every generally viable density function f(i;p1;p2;p3) which fulfils the given specific prerequisites. Here is an example with these inputs:

 Best case: No Losses with a probability of 10%

 Lower limit: Losses 50,000 USD with a probability of 1%

 Real case: Losses 150,000 USD

 Upper limit: Losses 400,000 USD with a probability of 1%

 Worst Case: Losses 1,000,000 USD with a probability of 1%