Warning when using Palisade PrecisionTree with @Risk

Warning! If you are using Palisade PrecisionTree together with @Risk using default settings the results are most likely inaccurate and missleading.

Konstantin Dozhdikov discovered that if you leave the default settings in PrecisionTree, then use it in conjunction with @Risk, the results will be incorrect and unrealistic. I have tested this using different version of Palisade Decision Tools and can confirm the results are completely misleading.

Good news, there is a simple solution. It is necessary to select the following items in the PrecisionTree settings (see the picture):


If you have used Palisade PrecisionTree in conjunction with @Risk in the past, you need to recalculate and update your reports. If you advised clients, you need to make adjustments in past reports and presentations and issue corrections.

Palisade helped to sort out the problem and find a solution after some pressure from us, but we still do not understand why such a default setting was chosen and how this problem will be fixed in future releases.

RISK-ACADEMY offers online courses


Informed Risk Taking

Learn 15 practical steps on integrating risk management into decision making, business processes, organizational culture and other activities!


ISO31000 Integrating Risk Management

Alex Sidorenko, known for his risk management blog http://www.riskacademy.blog, has created a 25-step program to integrate risk management into decision making, core business processes and the overall culture of the organization.


Advanced Risk Governance

This course gives guidance, motivation, critical information, and practical case studies to move beyond traditional risk governance, helping ensure risk management is not a stand-alone process but a change driver for business.


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