Tech Focus: Using Analytical Tools to Evaluate Risk
Making informed business decisions on matters involving considerable risk or uncertainty requires a skillful and accurate assessment of those risks and uncertainties. By utilizing powerful analytical tools, such as multi-attribute decision analysis and probabilistic methods, expert firms can assess project risks and uncertainties and provide simple, actionable deliverables for even the most complex projects. Langan possesses the expertise to assist clients – attorneys, public agencies, developers, utilities, landowners, and others – in making these difficult decisions, and has performed these services for projects ranging in value from less than $1 million to more than $1 billion.
Example projects include:
Publicly traded utility contemplating a replacement of key power delivery infrastructure: As part of the feasibility study, Langan evaluated multiple alignments and identified the best option based on trade-offs between the anticipated capital and operation and maintenance (O&M) cost, procurement and construction schedule, and in-service performance.
Cost recovery effort for a municipality with drinking water wells that were impacted by releases of chlorinated solvents at multiple dry cleaner sites: Langan prepared estimates of probable cost for remediation of each release to help guide the client counsel’s efforts.
Private landfill owner: As part of the feasibility study, Langan evaluated multiple environmental cleanup alternatives and identified the preferred option based on trade-offs between the anticipated capital and O&M cost, implementation timeframe, and achievement of cleanup objectives.
Public landowner: Langan prepared a probabilistic cost estimate for environmental remediation of a 70-acre parcel, which the developer would be responsible for as part of site redevelopment, to include in an offering to prospective developers.
Government agency contemplating early transfer of a heavily contaminated former military base: To bridge the gap between the U.S. Department of Defense and the developer’s cost estimates for environmental remediation, Langan prepared a probabilistic cost estimate for the same scope of services, enabling the agency to make a go/no-go decision on the opportunity.
As part of the evaluation and decision making process, Langan employs powerful analytical tools to help clients feel confident in their chosen solution. These tools help to not only identify the optimal solution or range of likely cost, but also identify the items most likely to benefit from further investigation, early sourcing of key materials, and other actions.