Risk-Based Decision Tools - Real Options Valuation Models

ACIL Tasman and its founding entities have a long history of helping clients develop and implement sound investment, asset management, governance, trading and policy strategies in the presence of very substantial levels of uncertainty. Beginning in the late 1980s, this advice was commonly informed using investment evaluation models, developed within ACIL Tasman, that today would be recognised as real options valuation models; many would also recognise strong elements of decision-tree and portfolio analysis methods in these approaches.

These tools were applied initially to support advice on the development of R&D strategies and portfolios and were incorporated into the internal planning systems of some large R&D organisations. The models and the underlying approach to risk-based investment planning and decision-making have since been developed for application much more widely, particularly in volatile energy and commodity markets and in relation to very long-term commitments, as in defence.

Further information can be obtained by contacting:

David Campbell

Jim Diamantopoulos