Follow
Potential Risk Cost

The potential risk cost is the sum of all planned costs associated with a risk, multiplied by the probability the risk will occur.

The potential risk cost is not incorporated into the planned cost of a project. It is instead used to determine the net value. The potential risk cost may be identified in the project itself via the risks tab or the business case.

The formula is: Potential Risk Cost = SUM(Risk Probability * Potential Cost of Risk)