Ad-hoc sensitivity configuration and calculation

Configuration

  1. Enter Sensitivity settings

  2. Select Site

  3. Add a new configuration with Add button

  4. Select block row

    1. Block rows will appear in this list if on site sheet they have the property "Allow sensitivity" and “Sensitivity for mill” set to true.

  5. Enter set options and a start year

Reports

Sensitivity is applied automatically when enabled in project settings and at least one valid configuration is available. In this case an additional line will be available in Value development line report with sensitivity parameter adjusted and added to the standard calculations.

Sensitivity rows must be part of dependency in formula that is used in Value development row with VAL_DEV code added.

Limitations

If the block row that the sensitivity needs to be applied has manual edits, the sensitivity will not be applied to that edit, which means that if this row is all manual inputs (like adjustment of some sort), the sensitivity will not be applied to the whole data row.

Calculations

Regarding the calculations. The formula of the applied sensitivity is following:

  • (cell value) x (calculated sensitivity ratio) x (1+ ((calculated FX sensitivity ratio) – 1) x (FX value from sensitivity parameters) )

  • Cell value is self-explanatory

  • Calculated sensitivity ratio depends on step and trend entered, by default it’s 1

    • If step is 10%, ratio is 1.1 for all years starting from a year defined in parameters (1.1, 1.1, 1.1…)

    • If trend is 10%, ratio will be increasing with each year, where start year is 1, next year is 1+10%=1.1, next year 1.1+10% and so on (1, 1.1, 1.21…)

    • If step and trend are both 10%, ratio will be first increased by 10% in start year, and then increased yearly by 10% more (1.1, 1.21, 1.331…)

  • Calculated sensitivity ratio is defined in separate sensitivity parameter with both step and trend, and is calculated same way as all others

  • FX value from sensitivity parameters is the value you enter together for the datatype that will have sensitivity applied

  • In case I enter step 10% and FX 10% (this value will be redundant) for DT in sensitivity parameters and cell value is 10

    • 10 x 1.1 x (1 + ((1 - 1) * 0.1)) = 11

  • In case I enter step 10% and FX 10% for DT in sensitivity parameters and cell value is 10 AND FX sensitivity parameter has step 10%

    • 10 x 1.1 x (1 + ((1.1 – 1) * 0.1)) = 11.11

Example:

Ad-hoc Sensitivity analysis calculations .xlsx

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