INTEGRATING EARNED VALUE MANAGEMENT WITH RISK MANAGEMENT
Earned value management (EVM) is a project management discipline that functions in concert with other disciplines and for which an integrated approach is essential. This appendix examines the relationship between EVM and risk management.
The relationship of risk and risk management with EVM is a complex one. We could even conclude that the reason for using EVM is to mitigate the risk of cost overruns on projects.
A risk is usually contemplated initially as an uncertainty. However, in order to be considered a risk, three elements are required:
(1) A possible risk event
(2) A probability of the event taking place
(3) An assessment of the impact that the risk ...