AACE International® and AACE Recommended Practices
AACE International® is the premier professional association for those practicing capital project quantitative risk analysis, as well as for estimators, schedulers, and project control personnel. AACE has documented scores of Recommended Practices (RPs), including many for risk management and quantification. In addition, AACE Estimate Classification RPs provide the foundation of the parametric modeling of systemic risks (the key reference for the deliverable matrices for each asset type).
The key RPs include:
- RP 40R-08Principles of risk quantification
- RP 113R-20Hybrid parametric+expected value (P+EV) method used in ValidRisk
- RP 42R-08Parametric method for systemic risk
- RP 44R-08Expected value method with MCS for project-specific risks
- RP 68R-11The probabilistic escalation method used in ValidEsc
- RP 110R-20Estimate validation (measuring bias)
The AACE website also contains two free, public documents that summarize its estimate classification RPs (PGD-01) and risk quantification RPs (PGD-02). Another free resource is a presentation by leading expert Larry Dysert on understanding estimate accuracy.
In addition to RPs, the AACE website has a virtual library of all its past papers and presentations. One can find all of the AACE papers by ValidRisk partner John Hollmann on many of the topics in the “Learn About” section of this website.
RPs and virtual library papers/presentations are free to AACE members. For those using ValidRisk, becoming a member of AACE should be an easy decision to make.