Application of Monte-Carlo method in quantitative risk analysis for research project

Risk quantitative analysis is a pinpoint, continuous process that is an important part of risk management. It helps to develop risk response plan, monitor and control the risks efficiently. Risk quantitative analysis should quantitatively analyze the impact of risk on project objectives, and assess the probability of achieving project objectives. This paper introduces several common quantitative analysis methods, and selects the Monte-Carlo method to perform quantitative risk analysis by comparing the advantages and disadvantages of each method. Using the Monte-Carlo method to analyze the risks need to develop a mathematical model to gather data and perform repeated sampling test, so as to obtain a sufficiently accurate approximation results to forecast the project objectives. This article describes the application of this method in risk management of a real research project.