K       L       M       N       O K Top L Likelihood: see probability Top M Mitigation: action either to reduce the probability of an adverse event occurring or to reduce the adverse consequences if it does occur. Monte Carlo simulation: a method for calculating the probabilities of outcomes by simulation, running a model many times, using a computer. A Monte Carlo model is an example of a ‘stochastic’ model. Top N Net present value (NPV): the difference between the present value of the cash flows generated by a project and its capital cost. It is calculated as part of the process of assessing and appraising investments. Top O Top