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influence diagram

   Also found in: Wikipedia 0.01 sec.
influence diagram [′in‚flü·əns ‚dī·ə‚gram]
(systems engineering)
A graph-theoretic representation of a decision, which may include four types of nodes (decision, chance, value, and deterministic), directed arcs between the nodes (which identify dependencies between them), a marginal or conditional probability distribution defined at each chance node, and a mathematical function associated with each of the other types of node.


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Our software allows for traditional risk profiles as well as influence diagram technology built in to allow individuals to understand interconnectivity between risks, and a platform in which all collaboration and communication goes through an ERM process to be captured in a secure manner.
The structured approach they discuss involves modeling tools such as influence diagrams, spreadsheet engineering, parameterization, sensitivity and strategy analysis, and iterative modeling.
I watched a webinar that featured an influence diagram with risk and John was a participant and really stood out.
 
 
 
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