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Setting a Contingency Reserve

Inside this lesson
  • Compute each retained risk's EMV as probability times impact.
  • Sum the retained EMVs into a single contingency reserve.
  • Distinguish this expected-value roll-up from the P80-minus-P50 percentile method.

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Educational content only. This course explains business and project risk-analysis concepts and the math behind them; it is not financial, accounting, investment, or professional certification advice, makes no recommendations, and predicts no cost, schedule, cash, or business outcomes. All figures are illustrative synthetic teaching examples. Consult a qualified professional before making financial or business decisions.