Should Contingency = Expected Value of Risks?

Nicholas Nesto PMP Project Manager| Kraft Foods East Hanover, Nj, United States

In allocating contingency dollars and time in a project plan, should one use the rolled up "expected value" of all risks to arrive at the contingency dollars and days? (by multiplying the percent probability of each risk occurring by the value of the impact, then adding together this "expected value" of all the risks to get the total contingency cost)?

Posted: Dec 10, 2007 5:19 PM

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Should Contingency = Expected Value of Risks?

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