Risk Factors

This method is simple to implement. It consists of applying risk consideration to the individual work package budgets within the work breakdown structure (WBS). If the risk input values for the work packages are in hand, then the effort moves rather quickly. However, in many cases, obtaining sound and dependable risk input values can be a challenge. Often, the input values are based on quick judgments made by project personnel. The method does not include procedures for the systematic and scientific development of the needed input data. Nevertheless, the primary use of the method is to estimate the total additional project costs that might be expected due to risks associated with the individual work packages.