Case Study: George Washington University achieves optimized debt portfolios and confident capital investment decisions with Palisade (@RISK & RISKOptimizer)

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

George Washington University researchers, led by Dr. Emmanuel Donkor in the School of Engineering and Applied Sciences, faced the challenge of optimizing debt portfolios and selecting among risky capital investments when project cash flows are uncertain. To model probabilistic default risk and rank competing investments, they used Palisade software — specifically @RISK and RISKOptimizer.

Using Palisade’s tools, Donkor built an Excel stochastic model and applied RISKOptimizer’s chance-constraint capability (e.g., capping default probability at 5%) to find an optimal mix of debt instruments, then validated outcomes with @RISK simulation. Palisade’s solution also enabled a spreadsheet framework for empirical tests of stochastic dominance, replacing visual “best guesses” with quantitative, defensible decisions; the research was published in The Engineering Economist and became one of the journal’s highest-ranked articles.

George Washington University

Emmanuel Donkor

Quantitative Analyst and Faculty Member