The risk manager is prioritizing risks based on the potential impact to cost and schedule and identifies the following 4 risks: Risk 1 has a US$500,000 potential cost increase, and a 60 day potential schedule slippage, with a 25% probability of occurring. Risk 2 has a US$200,000 potential cost increase, and a 20 day potential schedule slippage, with a 60% probability of occurring. Risk 3 has a US$1,200,000 potential cost increase, and a 90 day potential schedule slippage, with a 10% probability of occurring. Risk 4 has a US$600,000 potential cost increase, and a 70 day potential schedule slippage, with a 20% probability of occurring. Using expected monetary value calculation, which risk has the greatest potential impact to cost and schedule?
Select one answer.
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