A team member suggests holding a meeting with the HR department to discuss data requirements, responsibilities, and processes for ensuring that the data is usable, but this does not ensure that the risk will not occur on the day the data is scheduled to be loaded, Therefore, it is decided that that a member of your team will be assigned the task of extracting, cleaning, formatting. and validating the data. This will require additional time and cost, but only in the event that the HR department does not provide good data. The main point is that instead of logging this risk into a spreadsheet and then adding a percentage markup to the schedule and budget as a contingency, you can actually
build these actions into your project plan. To incorporate this risk, your project plan would have
three additional tasks: (l) hold data meeting with HR, (2) validate the data, and (3) clean the data. The hrst two tasks are tasks that would actually be done, so l()() percent of their time and cost would be included in the plan. However, thc third task, clean the data, would be performed only if the risk occurs. Since this risk may or may not occur, we can assign a percentage of the estif mated schedule and budget based on the probability of the risk occurring that we estimated during our risk man~
agement process. We can then multiply the impact of this contingency task (i.e., its cost, effort, and duration) by the probability of the risk’s occurrence to get an expected monetary value (BMV). The risk reserve or contingency budget then becomes the sum of all the EMV”s for all the contin-
gency tasks in the project plan, Although the EMV for a particular contingency task may not be enough to cover a particular risk when it occurs, it is unlikely that all of the risks on the project will occur.