Lesson 10 Assignment Worksheet - How many of the risks identified

Lesson 10 Assignment Worksheet Assignment

Instructions

For this assignment, you will be calcula5ng the expected monetary value (EMV) for each risk using the informa5on in the following chart:

Type or write your answer in the EMV column. Once you have finished and recorded your calcula5ons, use the completed chart to answer the following ques5ons.

Questions to Answer

1. How many of the risks identified are positive?

Risk ter

Risk # Ac-vity # 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

Remember: Positive numbers represent positive risks.

2. The total sum of the EMV column represents the poten5al budget for the con5ngency reserve. Add up all of your EMV calcula5ons. What is the sum?

3. Which ac'vity has the most risks iden5fied?

4. Some ac5vi5es have both posi5ve and nega5ve risks iden5fied. Add all risks for each ac5vity. This calculates the net EMV per ac5vity. Which ac'vity has the highest dollar value for posi-ve risks?

5. Some ac5vi5es have both posi5ve and nega5ve risks iden5fied. Add all risks for each ac5vity to calculate the net EMV per ac5vity. Which ac'vity has the lowest dollar value for nega-ve risks?

6. What is the net EMV for Ac5vity DD?

7. There are three risks associated with Ac5vity BB. Combine all three risks to determine the net EMV, and interpret the meaning behind the calcula5on. Is the overall risk value as calculated here posi5ve or nega5ve?

8. Take a look at Ac5vity EE. Calculate the net EMV, and interpret the meaning behind the calcula- 5on. Is the overall risk value posi5ve or nega5ve?

9. Which risk has the highest EMV? (Note: This is should be based on the numerical value and could be posi5ve or nega5ve.)

10. Which risk has the lowest posi5ve 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).

• Questions to Answer