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Project Risk Score Calculation
Posted: Tue May 01, 2018 11:17 am
How is the project risk score calculated?
Re: Project Risk Score Calculation
Posted: Tue May 01, 2018 11:20 am
The “risk” score for the project is a score calculated for either cost or schedule. There are several settings that can be used to calculate the score, however; fundamentally it is calculated:
Risk Score=Results of simulation/original estimate:
- If the score is < 1 then overall score indicates an opportunity
If the score is >1 then the score indicates a threat
For calculation of the Score, you can select several options for the results of simulation that include Mean, Mean + Standard Deviation, and other predefined percentiles as the numerator in the formula.