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Cost of risk is too high
Posted: Sat Jul 27, 2024 6:35 pm
by KerryMiller
I have project where the “cost of risk” values seem to high. For example, consider the risk below. There is an 25% chance that it will cost $5000. After a run, it appears that I have to make a risk reservation of 11,052. Or do I have to work it out differently?
Re: Cost of risk is too high
Posted: Sat Jul 27, 2024 7:04 pm
by Intaver Support
If this is happening when the risk is assigned to a single task, I suspect that the activity has a resource with a rate associated with it as well. When you have a schedule risk assigned to a task with a resource rate this will also generate "time dependent" costs.
Here is how this works.
Fixed cost risk to a single task 5 days:
Here are the results:
Create a resource with a rate of $100/hr:
Add the time delay risk:
Run a Simulation.
The results are now. The majority of the cost risk is due to the schedule increase.
