Please review attachment
Lesson 10 Assignment Worksheet
Assignment Instructions
For this assignment, you will be calculating the expected monetary value (EMV) for each risk using the information in the following chart:
Risk Register | ||||
Risk # | Activity # | Probability | Cost Impact | EMV |
1 | AA | 25% | $8,000 | |
2 | BB | 70% | $3,800 | |
3 | AA | 15% | -$3,000 | |
4 | DD | 60% | $25,000 | |
5 | DD | 40% | -$18,500 | |
6 | AA | 65% | -$6,000 | |
7 | BB | 40% | $7,500 | |
8 | BB | 35% | $30,000 | |
9 | CC | 50% | $45,000 | |
10 | EE | 45% | -$28,750 |
Type or write your answer in the EMV column. Once you have finished and recorded your calculations, use the completed chart to answer the following questions.
Remember: Positive numbers represent positive risks.
Questions to Answer
How many of the
risks identified are positive?
The total sum of the EMV column represents the potential budget for the contingency reserve. Add up all of your EMV calculations. What is the sum?
Which
activity has the most risks identified?
Some activities have both positive and negative risks identified. Add all risks for each activity. This calculates the net EMV per activity. Which
activity has the highest dollar value for
positive risks?
Some activities have both positive and negative risks identified. Add all risks for each activity to calculate the net EMV per activity. Which
activity has the lowest dollar value for
negative risks?
What is the net EMV for Activity DD?
There are three risks associated with Activity BB. Combine all three risks to determine the net EMV, and interpret the meaning behind the calculation. Is the overall risk value as calculated here positive or negative?
Which
risk has the highest EMV? (Note: This is should be based on the numerical value and could be positive or negative.)
Which
risk has the lowest positive EMV?
11. Every day we encounter the possibility of risks. Some we notice and others go unnoticed. Statistically speaking, the riskiest thing you do is get into your car and drive. Think about some of the daily risks you could potentially encounter in your projects (or just life in general).