Case Study: Cornell’s Dyson School uses @RISK from Lumivero to teach finance risk modeling and simulation

Students at Cornell University’s Dyson School use @RISK to evaluate capital budgeting, investments, random walks, derivatives pricing and real options

The customer, Cornell University's Dyson School of Applied Economics and Management, sought to move its finance students beyond theoretical models and teach them practical risk assessment using probabilities. To achieve this, the school's Risk Simulation and Optimization course, taught by Dr. Calum Turvey, implemented Lumivero's @RISK software to evaluate complex financial problems.

The solution involved integrating @RISK to convert standard finance textbook concepts into probability models, covering areas from cash flow risk and NPV to derivatives pricing via Monte Carlo simulation. As a result of using Lumivero's tool, students gained a more insightful, practical understanding of financial risk, and the course has become a permanent offering with an enrollment of roughly 45 students per semester.

Dyson School of Applied Economics and Management

Calum Turvey

W.I. Myers Professor of Agricultural Finance