PMP Formula: Expected Monetary Value

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Expected Monetary Value (EMV) is a statistical technique in risk management used to quantify risks and calculate the contingency reserve. It calculates the average outcome of all future events that may or may not happen. You multiply the probability with the impact of the identified risk to get the EMV. Equation: Expected Monetary Value (EMV) = Impact * Probability

Formula Definition
EMV Expected Monetary Value
= Impact * Probability
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