Monte Carlo Simulation/technique Glossary Definition

Monte Carlo Simulation/technique is a risk-management concept used to identify, analyze, plan for, or respond to uncertainty in project work. It helps teams make risk decisions explicit instead of leaving them informal or reactive.

Risk owners and project teams use this concept when documenting uncertainty, choosing responses, escalating exposure, and reviewing whether risk actions are working.

Related concepts include Risk Register, Risk Owner, Issue and Contingency Plan.