Case Study: George Washington University improves debt portfolio and capital investment decisions with Lumivero @RISK and RISKOptimizer

George Washington University Researchers Use @RISK and RISKOptimizer for Informed Decisions Around Debt Portfolios and Capital Investments

George Washington University, through Dr. Emmanuel Donkor, faced complex challenges in determining optimal debt portfolios and ranking risky capital investments. The university needed to develop methods that could maximize project value while minimizing default risk amidst financial uncertainty, a problem that traditional analytical approaches struggled to address effectively. To tackle this, they used Lumivero's @RISK and RISKOptimizer software.

Lumivero provided the solution by enabling the development of a stochastic financial model. Using RISKOptimizer, Dr. Donkor could incorporate probabilistic constraints to limit default risk and determine an optimal debt mix. For capital investments, the @RISK software was used to empirically test stochastic dominance, replacing subjective best guesses with data-driven analysis. The result was a new, superior method for financial risk analysis. The research paper detailing this work became one of the highest-ranked articles in the journal The Engineering Economist, significantly advancing the field and demonstrating Lumivero's impact on academic and financial decision-making.

George Washington University

Emmanuel Donkor

Quantitative Analyst and Faculty Member