Patent ID: 7516096

Claim:
A computer implemented method for forecasting a monetary impact resulting from at least one non-predictable event within an enterprise, comprising the steps of: a) statistically determining by computer means one or more monetary impact contributors from a group of potential cost factors, wherein said contributors are attributable to said non-predictable events event; b) querying a cost history database for the monetary impact of said contributors at occurrences of previous non-predictable events, wherein the monetary impact of said contributors comprises actual cost data; c) automatically selecting one of a plurality of modeling functions most likely to correspond to said monetary impact of said contributors at the occurrences of previous non-predictable events; d) computing scaling coefficients for each of said contributors; e) verifying said modeling function; f) statistically comparing an error function developed by said verifying to an a deviation limit; g) if said error function exceeds said deviation limit, automatically selecting another one of the plurality of modeling functions and executing steps d) through f) until said error function does not exceed said deviation limit; and h) forecasting a future monetary impact upon an occurrence of said non-predictable event by inputting a current monetary impact of said contributors into a modeling function selected using steps c) through g).