vault backup: 2025-07-14 17:04:52

risk-oriented-estimating.md

@@ -1,9 +1,8 @@
 # Risk Oriented Estimating
 
-Risk-Oriented Estimating (ROE), is a methodology for [[construction-estimating]]
-which prioritizes estimating tasks by their contribution to cost certainty,
-and determines the appropriate level of [[estimating-detail]]
-given [[risk#Risk Tolerance]]
+Risk-Oriented Estimating (ROE), is a methodology for [[construction-estimating]] which
+* prioritizes estimating tasks,
+* determines necessary [[estimating-detail]]
 
 ROE leans heavily on [[expected-value-of-perfect-information]],
 which challenges the natural tendency to shy from uncertainty
@@ -13,6 +12,15 @@ ROE does not endorse common shortcuts which round up to "cover" uncertainty,
 as these ultimately _increase_ risk by inflating the apparent project cost,
 increasing the probability of loss to a competitor.
 
-Bid risk may fit a [Taleb distribution](https://en.wikipedia.org/wiki/Taleb_distribution).
+> Bid risk may fit a [Taleb distribution](https://en.wikipedia.org/wiki/Taleb_distribution).
 
-Actuarial Science
+> Actuarial Science
+
+## Prioritizing Tasks
+
+ROE prioritizes estimating tasks by their contribution to _cost certainty_.
+
+## Determining Necessary Detail
+
+ROE determines the appropriate level of [[estimating-detail]]
+given an organization's [[risk#Risk Tolerance]].