The COMPEL Glossary Graph visualizes relationships between framework terminology, showing how concepts interconnect across domains, stages, and pillars. Term nodes cluster by pillar affiliation while cross-references reveal semantic dependencies — for example, how risk appetite connects to control effectiveness, model governance, and assurance requirements. This network representation helps practitioners navigate the framework vocabulary and understand that COMPEL terminology forms a coherent conceptual system rather than isolated definitions.
COMPEL Glossary / risk-adjusted-npv-rnpv
Risk-adjusted NPV (rNPV)
Net present value with stage-probability and risk-weighted discount applied at each cash-flow stage — capturing both the time value of money and the probability-of-success at each lifecycle gate.
What this means in practice
Appropriate for AI programs where stage-gate survival (build → deploy → adopt → sustain) is probabilistic rather than certain.
Synonyms
rNPV , probability-adjusted NPV
See also
- AI business case — A six-part document — hypothesis, investment, benefit, risk profile, financial summary, recommendation — that justifies an AI investment with explicit counterfactual and confidence bands.
- Monte Carlo simulation — A numerical method using repeated random sampling to produce probabilistic uncertainty bands on value forecasts — instead of single-point NPV estimates.
- Sensitivity Analysis — Sensitivity analysis is a technique that tests how changes in key assumptions affect the outcomes of a business case, financial model, or risk assessment.
- Stage-gate value review — A COMPEL-stage gate where realized-value-to-date is compared against the business case, and the investment is continued, adjusted, or sunset.