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risk-oriented-estimating

Risk Oriented Estimating

Risk-Oriented Estimating (ROE), is a methodology for construction-estimating which

ROE leans heavily on expected-value-of-perfect-information, which challenges the natural tendency to shy from uncertainty with the reality of the cost of certainty.

ROE does not endorse common shortcuts that 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.

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.