A project manager is estimating the monetary impact that identified risks will have on the project to assist in decision-making for their risk responses. Which technique is the project manager using?
The project manager is using Expected Monetary Value (EMV) analysis to quantify the possible financial impact of risks on the project. The EMV technique calculates the average outcome when the future includes scenarios that may or may not happen and is used to gauge the net result by combining the value of all possible outcomes, each of which has been weighted by its probability of occurrence and its impact in monetary terms.
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